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Compania Minera Poderosa S.A. (LIM:PODERC1) Graham Number : S/.5.01 (As of Dec. 2022)


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What is Compania Minera Poderosa S.A. Graham Number?

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 (2024-05-20), the stock price of Compania Minera Poderosa S.A. is S/.10.00. Compania Minera Poderosa S.A.'s graham number for the quarter that ended in Dec. 2022 was S/.5.01. Therefore, Compania Minera Poderosa S.A.'s Price to Graham Number ratio for today is 2.00.

The historical rank and industry rank for Compania Minera Poderosa S.A.'s Graham Number or its related term are showing as below:

LIM:PODERC1' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.41   Med: 1.14   Max: 2.07
Current: 2

During the past 13 years, the highest Price to Graham Number ratio of Compania Minera Poderosa S.A. was 2.07. The lowest was 0.41. And the median was 1.14.

LIM:PODERC1's Price-to-Graham-Number is ranked worse than
72.31% of 484 companies
in the Metals & Mining industry
Industry Median: 1.2 vs LIM:PODERC1: 2.00

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Compania Minera Poderosa S.A. Graham Number Historical Data

The historical data trend for Compania Minera Poderosa S.A.'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.

* Premium members only.

Compania Minera Poderosa S.A. Graham Number Chart

Compania Minera Poderosa S.A. Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.23 2.92 4.56 5.89 5.01

Compania Minera Poderosa S.A. Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.23 2.92 4.56 5.89 5.01

Competitive Comparison of Compania Minera Poderosa S.A.'s Graham Number

For the Other Precious Metals & Mining subindustry, Compania Minera Poderosa S.A.'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.


Compania Minera Poderosa S.A.'s Price-to-Graham-Number Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Compania Minera Poderosa S.A.'s Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Compania Minera Poderosa S.A.'s Price-to-Graham-Number falls into.



Compania Minera Poderosa S.A. Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Compania Minera Poderosa S.A.'s Graham Number for the fiscal year that ended in Dec. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*1.642*0.679)
=5.01

Compania Minera Poderosa S.A.'s Graham Number for the quarter that ended in Dec. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*1.642*0.679)
=5.01

* 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.


Compania Minera Poderosa S.A.  (LIM:PODERC1) 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.

Compania Minera Poderosa S.A.'s Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2022 )
=10.00/5.01
=2.00

* 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.


Compania Minera Poderosa S.A. Graham Number Related Terms

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Compania Minera Poderosa S.A. (LIM:PODERC1) Business Description

Traded in Other Exchanges
N/A
Address
Avenida La Floresta No. 497 Int. 501, Urb. Chacarilla del Estanque, San Borja, Lima, PER, 09
Compania Minera Poderosa S.A. is a mining company. Its main activity is the exploration, extraction, precipitation, and melting of gold to produce bullion gold. The company is engaged in Maranon and Santa María Production Units.

Compania Minera Poderosa S.A. (LIM:PODERC1) Headlines

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