Lexmark International (Lexmark International) Graham Number : $N/A (As of Sep. 2016)

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What is Lexmark International 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 (2024-05-06), the stock price of Lexmark International is $40.49. Lexmark International's graham number for the quarter that ended in Sep. 2016 was $N/A. Therefore, Lexmark International's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Lexmark International's Graham Number or its related term are showing as below:

LXK's Price-to-Graham-Number is not ranked ^*
in the Hardware industry.
Industry Median: 1.54
* 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.

Lexmark International Graham Number Historical Data

The historical data trend for Lexmark International'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.

Lexmark International Graham Number Chart

Lexmark International Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Graham Number

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33.75

19.17

30.97

13.48

Lexmark International Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Graham Number	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Lexmark International's Graham Number

For the Computer Hardware subindustry, Lexmark International'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.

Lexmark International's Price-to-Graham-Number Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Lexmark International's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Lexmark International's Price-to-Graham-Number falls into.

Lexmark International Graham Number Calculation

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

Lexmark International's Graham Number for the fiscal year that ended in Dec. 2015 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	-11.948	*	-0.66)
=	N/A

Lexmark International's Graham Number for the quarter that ended in Sep. 2016 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	-11.976	*	-1.09)
=	N/A

Lexmark International (NYSE:LXK) 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.

Lexmark International's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Sep. 2016 )
	=	40.49	/	N/A
	=	N/A

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.

Lexmark International Graham Number Related Terms

Thank you for viewing the detailed overview of Lexmark International's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.

Lexmark International (Lexmark International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Lexmark International Inc (NYSE:LXK) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.lexmark.com

Lexmark International Inc is a Delaware corporation, formed in July 1990. On November 15, 1995, it completed its initial public offering of Class A Common Stock. The Company is a developer, manufacturer and supplier of printing, imaging, device management, managed print services (MPS), document workflow and, more recently, business process and content management solutions. The Company operates in the office printing and imaging, enterprise content management (ECM), business process management (BPM), document output management (DOM), intelligent data capture and search software markets. Its products include laser printers and multifunction devices, dot matrix printers and the associated supplies/solutions/services, as well as ECM, BPM, DOM, intelligent data capture, search and web-based document imaging and workflow software solutions and services. It develops and ownsof the technology for its printing and imaging products and its software related to MPS and content and process management solutions. The Company is managed along two segments: Imaging Solutions and Services (ISS) and Perceptive Software. ISS offers a portfolio of monochrome and color laser printers and laser MFPs, as well as supplies, software applications, software solutions and MPS to help businesses efficiently capture, manage and access information. ISS laser products are core building blocks for enabling information on demand. They are designed to enable intelligent document capture in addition to delivering high-quality printed output on a variety of media types and sizes. When combined with document management and business process workflow software, from Perceptive Software, these products accelerate productivity by connecting people with the information they need. Its products include Monochrome Laser, Color Laser, Inkjet MFPs and AIOs, Dot Matrix Products, and MPS and Customer Support Services. Its competitors in this segment include Hewlett-Packard, Canon, Ricoh, Xerox, Brother, Konica Minolta, Kyocera, Okidata and Samsung. ISS operates manufacturing control centers in Lexington, Kentucky; Shenzhen, China; and Geneva, Switzerland; and has company-owned manufacturing sites in Boulder, Colorado and Juarez, Mexico. The Perceptive Software sgment offers a complete suite of ECM, BPM, DOM, intelligent data capture, search software and medical imaging VNA software products and solutions. Perceptive Software capture, content, search and BPM software products and solutions, enable users to capture, manage, and collaborate on important documents, information, and business processes, protect data integrity throughout its lifecycle and access precise content in the context of the users everyday business processes. These components are developed and maintained by Perceptive Software. Its solutions are Designed from Perceptive Softwares software platform, including the capture, content, process and search suites, Perceptive Software offers industry specific solutions of

Executives

Stephen R Hardis	director	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Michael J Maples	director	2208 WINDSOR ROAD, AUSTIN TX 78703
Reynolds Bish	officer: Vice President	C/O IOMEGA CORPORATION, 10955 VISTA SORRENTO PARKWAY, SAN DIEGO CA 92130
Jeri L Isbell	officer: VP of Human Resources	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Paul A Rooke	director, officer: Chairman and CEO	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
William R Fields	director	740 WEST NEW CIRCLE ROAD, LEXINGTON KY 40550
Kathi P Seifert	director	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Jared L Cohon	director
Robert Jr Holland	director	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Webster Roy Dunbar	director	5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Sandra L Helton	director	711 HIGH STREET, DES MOINES IA 50392-0300
J Edward Coleman	director	UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Montupet Jean Paul L	director	PARTNERRE LTD, WELLESLEY HOUSE 90 PITTS BAY RD, PEMBROKE BERMUDA D0 HM 08
Gamble John W Jr	officer: EVP & CFO	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Teresa Beck	director	1681 SOUTH MOHAWK WAY, SALT LAKE CITY UT 84108