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Samsung Electronics Co (XKRX:005935) Graham Number : ₩68,847.04 (As of Jun. 2024)


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What is Samsung Electronics Co 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 Samsung Electronics Co is ₩47950.00. Samsung Electronics Co's graham number for the quarter that ended in Jun. 2024 was ₩68,847.04. Therefore, Samsung Electronics Co's Price to Graham Number ratio for today is 0.70.

The historical rank and industry rank for Samsung Electronics Co's Graham Number or its related term are showing as below:

XKRX:005935' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.56   Med: 0.84   Max: 1.62
Current: 0.85

During the past 13 years, the highest Price to Graham Number ratio of Samsung Electronics Co was 1.62. The lowest was 0.56. And the median was 0.84.

XKRX:005935's Price-to-Graham-Number is ranked better than
76.71% of 1576 companies
in the Hardware industry
Industry Median: 1.575 vs XKRX:005935: 0.85

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


Samsung Electronics Co Graham Number Historical Data

The historical data trend for Samsung Electronics Co'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.

Samsung Electronics Co Graham Number Chart

Samsung Electronics Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49,673.36 56,363.42 72,695.31 93,167.40 48,411.46

Samsung Electronics Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 75,416.09 71,829.59 48,335.79 57,342.36 68,847.04

Competitive Comparison of Samsung Electronics Co's Graham Number

For the Consumer Electronics subindustry, Samsung Electronics Co'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.


Samsung Electronics Co's Price-to-Graham-Number Distribution in the Hardware Industry

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

* The bar in red indicates where Samsung Electronics Co's Price-to-Graham-Number falls into.



Samsung Electronics Co Graham Number Calculation

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

Samsung Electronics Co's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*48636.611*2141.66)
=48,411.46

Samsung Electronics Co's Graham Number for the quarter that ended in Jun. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*51515.356*4089.322)
=68,847.04

* 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.


Samsung Electronics Co  (XKRX:005935) 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.

Samsung Electronics Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2024 )
=47950.00/68,847.04
=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.


Samsung Electronics Co Graham Number Related Terms

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Samsung Electronics Co Business Description

Address
129, Samsung-ro, Yeongtong-gu, Gyeonggi-do, Suwon-si, KOR, 443-742
Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. More than half of its profit is generated from semiconductor business, and a further 20-25% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.

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