GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » RLF Ltd (BOM:512618) » Definitions » GF Value Rank

RLF (BOM:512618) GF Value Rank : 0 (As of Jun. 05, 2024)


View and export this data going back to 1995. Start your Free Trial

What is RLF GF Value Rank?

RLF has the GF Value Rank of 0.

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.


RLF GF Value Rank Related Terms

Thank you for viewing the detailed overview of RLF's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


RLF (BOM:512618) Business Description

Traded in Other Exchanges
N/A
Address
14 Kms, Gurugram Pataudi Road, Village Jhund Sarai Veeran, Sector-95, Gurugram, HR, IND, 122001
RLF Ltd is an India-based company engaged in the textile business. It is involved in the business of embroidery manufacturing. In addition, the company is also engaged in sports activities. The company has a Tennis Centre where the National Tennis Tournaments were conducted for various different age categories. It has also conducted various Tennis workshops for coaches and Tennis players. The company receives revenue from the manufacturing operations and service income. Majority of the revenue is generated from service income.

RLF (BOM:512618) Headlines

No Headlines