GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Aussie Broadband Ltd (ASX:ABB) » Definitions » GF Value Rank

Aussie Broadband (ASX:ABB) GF Value Rank : 7 (As of Apr. 26, 2025)


View and export this data going back to 2020. Start your Free Trial

What is Aussie Broadband GF Value Rank?

Aussie Broadband has the GF Value Rank of 7.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It 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.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison of Aussie Broadband's GF Value Rank

For the Telecom Services subindustry, Aussie Broadband'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.


Aussie Broadband's GF Value Rank Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Aussie Broadband's GF Value Rank falls into.


;
;

Aussie Broadband GF Value Rank Related Terms

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


Aussie Broadband Business Description

Traded in Other Exchanges
N/A
Address
3 Electra Avenue, Morwell, VIC, AUS, 3840
Aussie Broadband Ltd is a telecommunications and technology services company in Australia, providing services for Residential, Business, Wholesale, and Enterprise & Government customers.. It provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise, and managed service providers. It is organized into four operating segments: Residential, Business, Wholesale, and Enterprise and Government. The Residential segment is the main revenue driver for the group. Residential segment provides telecommunications services to residential users. The company services all states and territories in Australia.

Aussie Broadband Headlines

No Headlines