Manchester & London Investment Trust (LSE:MNL) GF Value Rank : 1 (As of May. 22, 2024)

View and export this data going back to 1997. Start your Free Trial

What is Manchester & London Investment Trust GF Value Rank?

Manchester & London Investment Trust 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 Manchester & London Investment Trust's GF Value Rank

For the Asset Management subindustry, Manchester & London Investment Trust'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.

Manchester & London Investment Trust's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Manchester & London Investment Trust's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Manchester & London Investment Trust's GF Value Rank falls into.

Manchester & London Investment Trust GF Value Rank Related Terms

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

Manchester & London Investment Trust (LSE:MNL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Manchester & London Investment Trust PLC (LSE:MNL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

MNLl:UK

Address

12a Princes Gate Mews, London, GBR, SW7 2PS

Website

https://www.mlcapman.com

Manchester & London Investment Trust PLC is an investment company. It invests in companies whose shares are admitted to trading on a regulated market. The investment objective of the company is to achieve capital appreciation together with a reasonable level of income. It may invest in derivatives, money market instruments, currency instruments, contracts for differences (CFDs), futures, forwards, and options for the purposes of holding investments and hedging positions against movements in equity markets, currencies, and interest rates.

Manchester & London Investment Trust (LSE:MNL) Headlines

No Headlines