GECC has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
GECC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 (2024-05-06), the stock price of Great Elm Capital is $10.21. Great Elm Capital's graham number for the quarter that ended in Dec. 2023 was $31.20. Therefore, Great Elm Capital's Price to Graham Number ratio for today is 0.33.
The historical rank and industry rank for Great Elm Capital's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Great Elm Capital was 0.34. The lowest was 0.33. And the median was 0.34.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
The historical data trend for Great Elm Capital'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.
Great Elm Capital Annual Data | |||||||||||||||||||||
Trend | Jun14 | Jun15 | Jun16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Graham Number | Get a 7-Day Free Trial | - | - | - | - | 31.20 |
Great Elm Capital Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Graham Number | Get a 7-Day Free Trial | - | - | 15.46 | 22.27 | 31.20 |
For the Asset Management subindustry, Great Elm Capital'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.
For the Asset Management industry and Financial Services sector, Great Elm Capital's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Great Elm Capital's Price-to-Graham-Number falls into.
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Great Elm Capital's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI) |
= | sqrt of (22.5 | * | 12.989 | * | 3.33) |
= | 31.20 |
Great Elm Capital's Graham Number for the quarter that ended in Dec. 2023 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI (TTM)) |
= | sqrt of (22.5 | * | 12.989 | * | 3.33) |
= | 31.20 |
* 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.
Great Elm Capital (NAS:GECC) 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.
Great Elm Capital's Price to Graham number Ratio for today is calculated as
Price to Graham number | = | Share Price (Today) | / | Graham number (Q: Dec. 2023 ) |
= | 10.21 | / | 31.20 | |
= | 0.33 |
* 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.
Thank you for viewing the detailed overview of Great Elm Capital's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Great Elm Group, Inc. | 10 percent owner | 800 SOUTH STREET, SUITE 230, WALTHAM MA 02453 |
Richard M Cohen | director | C/O CARNEGIE INTERNATIONAL CORP, 11350 MCCORMICK ROAD EXECUTIVE PLAZA #3, HUNT VALLEY MD 21031 |
Mark Kuperschmid | director | MAST CAPITAL MANAGEMENT, LLC, 200 CLARENDON STREET, 51ST FLOOR, BOSTON MA 02116 |
Matthew D Kaplan | officer: CEO and President | 800 SOUTH STREET, SUITE 230, WALTHAM MA 02453 |
Northern Right Capital Management, L.p. | 10 percent owner, other: Member of 13D 10% Group | 9 OLD KINGS HWY. S., 4TH FLOOR, DARIEN CT 06820 |
Nrc Partners I, Lp | 10 percent owner | 9 OLD KINGS HIGHWAY SOUTH, 4TH FLOOR, DARIEN CT 06820 |
Bc Advisors Llc | 10 percent owner | 500 CRESCENT COURT, SUITE 230, DALLAS TX 75201 |
Northern Right Capital (qp), L.p. | 10 percent owner | 9 OLD KINGS HWY. S., 4TH FLOOR, DARIEN CT 06820 |
Matthew A Drapkin | director | 10 CORBIN DRIVE, 3RD FLOOR, DARIEN CT 06820 |
Chad Perry | director | C/O TANGER FACTORY OUTLET CENTERS, INC., 3200 NORTHLINE AVENUE, SUITE 360, GREENSBORO NC 27408 |
Lenders Funding Llc /california | 10 percent owner | 523 A AVENUE, CORONADO CA 92118 |
Robert A Zadek | 10 percent owner | 523 A AVENUE, CORONADO CA 92118 |
Erik A Falk | director | C/O KKR ASSET MANAGEMENT LLC, 555 CALIFORNIA STREET, 50TH FLOOR, SAN FRANCISCO CA 94104 |
Adam M Kleinman | officer: Chief Compliance Officer | 800 SOUTH STREET, SUITE 230, WALTHAM MA 02453 |
Michael C Speller | director | 800 SOUTH STREET, SUITE 230, WALTHAM MA 02453 |
From GuruFocus
By Value_Insider Value_Insider • 11-14-2022
By Marketwired • 08-03-2023
By Marketwired • 07-27-2023
By Marketwired • 08-09-2023
By GuruFocus Research • 11-02-2023
By GuruFocusNews GuruFocusNews • 07-03-2022
By GuruFocusNews GuruFocusNews • 06-23-2022
By PurpleRose PurpleRose • 07-13-2022
By sperokesalga sperokesalga • 03-01-2023
By GuruFocusNews GuruFocusNews • 06-16-2022
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.