NextSource Materials (TSX:NEXT) GF Value Rank : 0 (As of May. 26, 2024)

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What is NextSource Materials GF Value Rank?

NextSource Materials 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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NextSource Materials (TSX:NEXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » NextSource Materials Inc (TSX:NEXT) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

NSRCF:USA 1JWA:Germany

Address

130 King Street West, Exchange Tower, Suite 1940, Toronto, ON, CAN, M5X 2A2

Website

https://www.nextsourcematerials.com

NextSource Materials Inc is a strategic materials development company based in Toronto, Canada. The company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite deposits globally, and contains SuperFlake graphite. The company also holds an interest in Green Giant Vanadium Project.

Executives

Quentin Yarie

Director