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Flow Beverage (TSX:FLOW) Graham Number : C$N/A (As of Jan. 2024)


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What is Flow Beverage 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 (2024-06-07), the stock price of Flow Beverage is C$0.185. Flow Beverage's graham number for the quarter that ended in Jan. 2024 was C$N/A. Therefore, Flow Beverage's Price to Graham Number ratio for today is N/A.

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

TSX:FLOW's Price-to-Graham-Number is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 1.49
* 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.


Flow Beverage Graham Number Historical Data

The historical data trend for Flow Beverage'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.

Flow Beverage Graham Number Chart

Flow Beverage Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Oct21 Oct22 Oct23
Graham Number
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Flow Beverage Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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Competitive Comparison of Flow Beverage's Graham Number

For the Beverages - Non-Alcoholic subindustry, Flow Beverage'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.


Flow Beverage's Price-to-Graham-Number Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Flow Beverage's Price-to-Graham-Number distribution charts can be found below:

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



Flow Beverage Graham Number Calculation

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

Flow Beverage's Graham Number for the fiscal year that ended in Oct. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*-0.109*-0.733)
=N/A

Flow Beverage's Graham Number for the quarter that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*-0.232*-0.873)
=N/A

* 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.


Flow Beverage  (TSX:FLOW) 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.

Flow Beverage's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2024 )
=0.185/N/A
=N/A

* 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.


Flow Beverage Graham Number Related Terms

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Flow Beverage (TSX:FLOW) Business Description

Traded in Other Exchanges
Address
155 Industrial Parkway South, Unit 7-10, Aurora, ON, CAN, L4G 3G6
Flow Beverage Corp is a health and wellness-focused beverage company at the convergence of three important trends in the consumer-packaged goods industry including functional ingredients, sustainable packaging and supply chain and premium quality. It markets its premium alkaline spring water in Canada and the United States in original unflavoured and a range of organic flavors in various sizes.