GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » MFS Charter Income Trust (NYSE:MCR) » Definitions » Graham Number

MCR (MFS Charterome Trust) Graham Number : $9.06 (As of May. 2024)


View and export this data going back to . Start your Free Trial

What is MFS Charterome Trust 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 (2024-10-31), the stock price of MFS Charterome Trust is $6.34. MFS Charterome Trust's graham number for the quarter that ended in May. 2024 was $9.06. Therefore, MFS Charterome Trust's Price to Graham Number ratio for today is 0.70.

The historical rank and industry rank for MFS Charterome Trust's Graham Number or its related term are showing as below:

MCR' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.54   Med: 0.74   Max: 2.07
Current: 0.7

During the past 7 years, the highest Price to Graham Number ratio of MFS Charterome Trust was 2.07. The lowest was 0.54. And the median was 0.74.

MCR's Price-to-Graham-Number is ranked better than
51.04% of 1205 companies
in the Asset Management industry
Industry Median: 0.71 vs MCR: 0.70

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


MFS Charterome Trust Graham Number Historical Data

The historical data trend for MFS Charterome Trust'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.

MFS Charterome Trust Graham Number Chart

MFS Charterome Trust Annual Data
Trend Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Graham Number
Get a 7-Day Free Trial 15.28 11.32 4.10 - 7.56

MFS Charterome Trust Semi-Annual Data
Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 - - - 7.56 9.06

Competitive Comparison of MFS Charterome Trust's Graham Number

For the Asset Management subindustry, MFS Charterome Trust'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.


MFS Charterome Trust's Price-to-Graham-Number Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, MFS Charterome Trust's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where MFS Charterome Trust's Price-to-Graham-Number falls into.



MFS Charterome Trust Graham Number Calculation

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

MFS Charterome Trust's Graham Number for the fiscal year that ended in Nov. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*6.693*0.38)
=7.56

MFS Charterome Trust's Graham Number for the quarter that ended in May. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.76*0.54)
=9.06

* 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.


MFS Charterome Trust  (NYSE:MCR) 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.

MFS Charterome Trust's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: May. 2024 )
=6.34/9.06
=0.70

* 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.


MFS Charterome Trust Graham Number Related Terms

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


MFS Charterome Trust Business Description

Traded in Other Exchanges
N/A
Address
111 Huntington Avenue, Boston, MA, USA, 02199
MFS Charter Income Trust is a United States-based closed-end fund. Its investment objective is to seek high current income. The fund invests the assets in debt instruments. It invests the assets in corporate bonds of U.S. and foreign issuers, U.S. Government securities, foreign government securities, mortgage-backed and other asset-backed securities of U.S. and foreign issuers, and debt instruments of issuers located in emerging market countries.
Executives
Linda Dougherty other: OFFICER OF ADVISOR 111 HUNTINGTON AVENUE, BOSTON MA 02199
Neeraj Arora other: PORTFOLIO MANAGER 111 HUNTINGTON AVENUE, BOSTON MA 02199
John David Mitchell other: PORTFOLIO MANAGER 111 HUNTINGTON AVENUE, BOSTON MA 02199
Rosa Licea-mailloux other: CHIEF COMPLIANCE OFFICER 111 HUNTINGTON AVENUE, BOSTON MA 02199
Manjit Singh director 111 HUNTINGTON AVENUE, BOSTON MA 02072
Melissa Kennedy other: OFFICER OF ADVISOR 111 HUNTINGTON AVENUE, BOSTON MA 02199
Jacques Jr Goulet other: OFFICER TO ADVISOR 111 HUNTINGTON AVENUE, BOSTON MA 02199
Henry Peabody other: PORTFOLIO MANAGER 111 HUNTINGTON AVENUE, BOSTON MA 02199
Philipp Burgener other: PORTFOLIO MANAGER 111 HUNTINGTON AVENUE, BOSTON MA 02199
Andy Li other: PORTFOLIO MANAGER 111 HUNTINGTON AVENUE, BOSTON MA 02199
James W. Kilman director 111 HUNTINGTON AVENUE, BOSTON MA 02199
Edward M. Maloney officer: Officer of Advisor 111 HUNTINGTON AVENUE, BOSTON MA 02199
Peter Darrell Jones director 111 HUNTINGTON AVENUE, BOSTON MA 02199
Michael Skatrud other: Portfolio Manager MFS INVESTMENT MANAGEMENT, 111 HUNTINGTON AVENUE, BOSTON MA 01760
Carol W. Geremia officer: PRESIDENT 111 HUNTINGTON AVENUE, BOSTON MA 02199

MFS Charterome Trust Headlines