Nexeo Solutions (Nexeo Solutions) Graham Number : $N/A (As of Dec. 2018)

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What is Nexeo Solutions 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 (2024-05-10), the stock price of Nexeo Solutions is $9.93. Nexeo Solutions's graham number for the quarter that ended in Dec. 2018 was $N/A. Therefore, Nexeo Solutions's Price to Graham Number ratio for today is N/A.

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

NXEO's Price-to-Graham-Number is not ranked ^*
in the Chemicals industry.
Industry Median: 1.5
* 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.

Nexeo Solutions Graham Number Historical Data

The historical data trend for Nexeo Solutions'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.

Nexeo Solutions Graham Number Chart

Nexeo Solutions Annual Data

Trend

Dec14

Dec15

Sep16

Sep17

Sep18

Graham Number

Nexeo Solutions Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Graham Number	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Nexeo Solutions's Graham Number

For the Chemicals subindustry, Nexeo Solutions'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.

Nexeo Solutions's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nexeo Solutions's Price-to-Graham-Number distribution charts can be found below:

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

Nexeo Solutions Graham Number Calculation

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

Nexeo Solutions's Graham Number for the fiscal year that ended in Sep. 2018 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	-1.081	*	0.382)
=	N/A

Nexeo Solutions's Graham Number for the quarter that ended in Dec. 2018 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	-0.915	*	0.252)
=	N/A

Nexeo Solutions (NAS:NXEO) 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.

Nexeo Solutions's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Dec. 2018 )
	=	9.93	/	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.

Nexeo Solutions Graham Number Related Terms

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Nexeo Solutions (Nexeo Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Nexeo Solutions Inc (NAS:NXEO) » Definitions » Graham Number

Traded in Other Exchanges

N/A

Address

Website

http://www.nexeosolutions.com

Nexeo Solutions Inc distributes chemicals and plastic products across North America and Asia. The company operates its business through three segments that are; Chemicals, Plastics, and Environmental Services. The firm through its operating segments distributes specialty and industrial chemicals, additives and solvents to industrial users, commodity polymer products and prime engineering resins to companies engaged in plastics processing. Nexeo also provides its customers with on-site and off-site hazardous and non-hazardous waste collection, recovery and arrangement for disposal services or recycling. It generates the majority of the revenues from the sale of chemicals and plastic materials.

Executives

James G Coulter	10 percent owner, other: Former 10% Owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Thomas E Zacharias	director	C/O W P CAREY & CO LLC, 50 ROCKEFELLER PLAZA, NEW YORK NY 10020
Brian Herington	officer: Executive VP, Chemicals	3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380
Steven T Romick	10 percent owner	11400 W OLYMPIC BLVD, STE 1200, LOS ANGELES CA 90064
Mark Landecker	10 percent owner	11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064
J Richard Atwood	10 percent owner
Brian A. Selmo	10 percent owner	11400 W. OLYMPIC BLVD., STE. 1200, LOS ANGELES CA 90064
Gabriela Garcia	officer: Controller	1301 RIVERPLACE BOULEVARD, SUITE 2300, JACKSONVILLE FL 32207
David A. Bradley	director, officer: President & CEO	15710 JOHN F. KENNDEY BLVD, SUITE 300, HOUSTON TX 77032
Dan F Smith	director	1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010
Kenneth Michael Burke	director	11742 RIVERVIEW DRIVE, HOUSTON TX 77007
Ross Crane	officer: EVP & CFO	3 WATERWAY SQUARE PLACE, SUITE 1000, THE WOODLANDS TX 77380
Tpg Advisors Vi, Inc.	other: Former 10% Owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Tpg Group Holdings (sbs) Advisors, Inc.	other: Former 10% Owner	C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
David Bonderman	other: Former 10% Owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102