Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2024-05-23), the stock price of Dendreon is €0.13. Dendreon's graham number for the quarter that ended in Sep. 2014 was €N/A. Therefore, Dendreon's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Dendreon's Graham Number or its related term are showing as below:
FRA:DNR's Price-to-Graham-Number is not ranked *
in the Biotechnology industry.
Industry Median: 2.18 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Dendreon Graham Number Historical Data
The historical data trend for Dendreon's Graham Number can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Dendreon's Graham Number
For the Biotechnology subindustry, Dendreon's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dendreon's Price-to-Graham-Number Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Dendreon's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Dendreon's Price-to-Graham-Number falls into.
Dendreon Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Dendreon's Graham Number for the fiscal year that ended in Dec. 2014 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dendreon (FRA:DNR) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Dendreon's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2014 )
=
0.13
/
N/A
=
N/A
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Dendreon Graham Number Related Terms
Thank you for viewing the detailed overview of Dendreon's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Dendreon Corp is a Delaware corporation. The Company is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. Its product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. PROVENGE(r) (sipuleucel-T), is its first commercialized product licensed by the United States Food and Drug Administration, and is a first in class autologous cellular immunotherapy for the treatment of asymptomatic or minimally symptomatic, metastatic, castrate-resistant (hormone-refractory) prostate cancer. Prostate cancer is the most common non-skin cancer among men in the United States, with over one million men currently diagnosed with the disease, and the second cause of cancer deaths in men in the United States. The Company owns worldwide rights for PROVENGE. The Other potential product candidates we have under development include our investigational active cellular immunotherapy, DN24-02, which potentially may be used for the treatment of patients with bladder, breast, ovarian and other solid tumors expressing HER2/neu. In addition, the Company has developed an orally-available small molecule treatment targeting TRPM8 that could be applicable to multiple types of cancer. The Company currently depends on specialized vendor relationships that are not readily replaceable for some of the components for its active immunotherapy candidates. Products such as chemotherapeutics, androgen metabolism or androgen receptor antagonists, endothelin A receptor antagonists, antisense compounds, angiogenesis inhibitors and gene therapies for cancer are also under development by a number of companies and could potentially compete with PROVENGE and its other product candidates. The Company's competitors include major pharmaceutical companies. The Company is subject to a variety of federal, state and local regulations relating to the use, handling, storage and disposal of hazardous materials, including chemicals and radioactive and biological materials. The Company is also subject to regulation by the Occupational Safety and Health Administration ('OSHA'), and the Environmental Protection Agency ('EPA'), and to regulation under the Toxic Substances Control Act.
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