MTN Group (STU:LL6) GF Value Rank : 8 (As of May. 14, 2024)

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What is MTN Group GF Value Rank?

MTN Group has the GF Value Rank of 8.

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 MTN Group's GF Value Rank

For the Telecom Services subindustry, MTN Group'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.

MTN Group's GF Value Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, MTN Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where MTN Group's GF Value Rank falls into.

MTN Group GF Value Rank Related Terms

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MTN Group (STU:LL6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » MTN Group Ltd (STU:LL6) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

MTN:South Africa MTNOY:USA MTNOF:USA

Address

Innovation Centre 216 - 14th Avenue, Fairland, Roodepoort, Gauteng, Johannesburg, ZAF, 2195

Website

https://www.mtn.com

MTN Group Ltd is a mobile telecommunications provider operating across South Africa, Nigeria, Ghana, Cameroon, Ivory Coast, Uganda, Syria, and Sudan. most of the company's revenue is earned in South Africa and Nigeria. The company also has a joint venture in Iran. From a product perspective, most of its revenue is from voice and data. Other contributors include SMS and sale of devices revenue. MTN also provides enterprise services to small/midsize enterprises and corporate clients. The company owns the mobile infrastructure and data centers. Its segments include Network services, Mobile devices, Inter- connect and roaming, Digital and fintech and others.

MTN Group (STU:LL6) Headlines

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