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SCGM Bhd (XKLS:7247) Graham Number : RM1.40 (As of Oct. 2023)


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What is SCGM Bhd 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 SCGM Bhd is RM0.625. SCGM Bhd's graham number for the quarter that ended in Oct. 2023 was RM1.40. Therefore, SCGM Bhd's Price to Graham Number ratio for today is 0.45.

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

XKLS:7247' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.11   Med: 1.28   Max: 2.63
Current: 0.45

During the past 13 years, the highest Price to Graham Number ratio of SCGM Bhd was 2.63. The lowest was 0.11. And the median was 1.28.

XKLS:7247's Price-to-Graham-Number is ranked better than
89.36% of 282 companies
in the Packaging & Containers industry
Industry Median: 1.17 vs XKLS:7247: 0.45

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


SCGM Bhd Graham Number Historical Data

The historical data trend for SCGM Bhd'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.

SCGM Bhd Graham Number Chart

SCGM Bhd Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.34 1.96 - 4.72

SCGM Bhd Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.49 4.57 4.72 4.68 1.40

Competitive Comparison of SCGM Bhd's Graham Number

For the Packaging & Containers subindustry, SCGM Bhd'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.


SCGM Bhd's Price-to-Graham-Number Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, SCGM Bhd's Price-to-Graham-Number distribution charts can be found below:

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



SCGM Bhd Graham Number Calculation

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

SCGM Bhd's Graham Number for the fiscal year that ended in Apr. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.58*1.709)
=4.72

SCGM Bhd's Graham Number for the quarter that ended in Oct. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.58*0.151)
=1.40

* 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.


SCGM Bhd  (XKLS:7247) 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.

SCGM Bhd's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Oct. 2023 )
=0.625/1.40
=0.45

* 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.


SCGM Bhd Graham Number Related Terms

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


SCGM Bhd (XKLS:7247) Business Description

Traded in Other Exchanges
N/A
Address
PTD 109444, Jalan Sengkang, Kawasan Perusahaan Sri Sengkang, Johor Darul, Takzim, Kulai, JHR, MYS, 81000
SCGM Bhd is an investment holding company. The company's business segments are Manufacturing and Investment holding. The Manufacturing segment of the company is engaged in the manufacturing and finished plastic products, other articles of paper, paperboards, and plastic articles for the packing of goods. The company derives the majority of its revenue from the Investment holding segment. The predominantly operates in Malaysia.

SCGM Bhd (XKLS:7247) Headlines

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