CGX Energy (CGX Energy) GF Value Rank : 0 (As of Jun. 07, 2024)

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

What is CGX Energy GF Value Rank?

CGX Energy 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.

CGX Energy GF Value Rank Related Terms

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

CGX Energy (CGX Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » CGX Energy Inc (OTCPK:CGXEF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

OYL:Canada

Address

333 Bay Street, Suite 2400, Toronto, ON, CAN, M5H 2T6

Website

https://www.cgxenergy.com

CGX Energy Inc is a Canada-based company that is engaged in exploring petroleum and natural gas in Guyana, South America. The company's offshore concessions include Corentyne and Demerara, and onshore concessions include Berbice.

CGX Energy (CGX Energy) Headlines

From GuruFocus

CGX Energy Inc and Frontera Energy Virtual Presentation Transcript

By GuruFocus Research • 02-13-2024