Genel Energy (LSE:GENL) GF Value Rank : 0 (As of May. 26, 2024)

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What is Genel Energy GF Value Rank?

Genel 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.

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Genel Energy (LSE:GENL) Business Description

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GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Genel Energy PLC (LSE:GENL) » Definitions » GF Value Rank

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GEGYF:USA GENLl:UK 4VL:Germany

Address

Fifth Floor, 36 Broadway, Victoria, London, GBR, SW1H 0BH

Website

https://www.genelenergy.com

Genel Energy PLC produces oil and gas primarily in the Kurdistan region of Iraq. The Company has two reportable business segments: Production and Pre-production. Capital allocation decisions for the production segment are considered in the context of the cash flows expected from the production and sale of crude oil. The production segment is comprised of the producing fields on the Tawke PSC , the Taq Taq PSC and the Sarta PSC which are located in the KRI and make sales predominantly to the KRG. The pre-production segment is comprised of discovered resource held under the Qara Dagh PSC, the Bina Bawi PSC and the Miran PSC , all in the KRI and exploration activity, principally located in Somaliland and Morocco.

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