Som Datt Finance (BOM:511571) GF Value Rank : 1 (As of May. 26, 2024)

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What is Som Datt Finance GF Value Rank?

Som Datt Finance has the GF Value Rank of 1.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Som Datt Finance's GF Value Rank

For the Credit Services subindustry, Som Datt Finance's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

Som Datt Finance's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Som Datt Finance's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Som Datt Finance's GF Value Rank falls into.

Som Datt Finance GF Value Rank Related Terms

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Som Datt Finance (BOM:511571) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Som Datt Finance Corp Ltd (BOM:511571) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

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Address

516, Suneja Tower-I, District Centre, Janakpuri, Delhi, IND, 110058

Website

https://www.somdattfin.com

Som Datt Finance Corp Ltd is a non-banking finance company. It is engaged in the business of investment and finance in the areas of hedged capital market products and bill discounting and inter-corporate loans. The company's reportable business segment being investing. Geographically, it operates only in India.

Som Datt Finance (BOM:511571) Headlines

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