GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Panchsheel Organics Ltd (BOM:531726) » Definitions » GF Value Rank

Panchsheel Organics (BOM:531726) GF Value Rank : 10 (As of May. 16, 2024)


View and export this data going back to 1996. Start your Free Trial

What is Panchsheel Organics GF Value Rank?

Panchsheel Organics has the GF Value Rank of 10.

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 Panchsheel Organics's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Panchsheel Organics'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.


Panchsheel Organics's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Panchsheel Organics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Panchsheel Organics's GF Value Rank falls into.



Panchsheel Organics GF Value Rank Related Terms

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


Panchsheel Organics (BOM:531726) Business Description

Traded in Other Exchanges
N/A
Address
Prof. N. S. Phadke Marg, 137,138 Hubtown Solaris, 1st Floor, Opposite Teli Gali, Near Andheri East West Flyover, Andheri (East), Mumbai, MH, IND, 400 069
Panchsheel Organics Ltd is an India based pharmaceutical company. It is engaged in the manufacturing and exporting of Active Pharma Ingredients (APIs), intermediates, and finished formulations. The company's product categories include API and intermediaries, Steroids and Hormones, Veterinary Products, OTC Products, Oncology Products, Neutraceutical Products, and Excipients.

Panchsheel Organics (BOM:531726) Headlines

No Headlines