Micro Systemation AB (OSTO:MSAB B) GF Value Rank : 6 (As of May. 15, 2024)

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What is Micro Systemation AB GF Value Rank?

Micro Systemation AB has the GF Value Rank of 6.

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 Micro Systemation AB's GF Value Rank

For the Software - Application subindustry, Micro Systemation AB'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.

Micro Systemation AB's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Micro Systemation AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Micro Systemation AB's GF Value Rank falls into.

Micro Systemation AB GF Value Rank Related Terms

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Micro Systemation AB (OSTO:MSAB B) Business Description

Industry

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Traded in Other Exchanges

0FBM:UK

Address

Hornsbruksgatan 28, Stockholm, SWE, 117 34

Website

http://www.msab.com

Micro Systemation AB is engaged in product development, production and sales of solutions within the area of mobile digital forensics. It provides software product to extract, analyses and present data from digital devices, primarily mobile phones. The company has three main product families: XRY, XAMN and XEC. The products are used mainly by police, military and intelligence agencies world-wide and are effective tools for securing evidence. The company's major revenue is derived from EMEA & Latin America.

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