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Australian Bond Exchange Holdings (ASX:ABE) GF Value Rank : 0 (As of May. 17, 2024)


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What is Australian Bond Exchange Holdings GF Value Rank?

Australian Bond Exchange Holdings 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.

Australian Bond Exchange Holdings GF Value Rank Related Terms

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Australian Bond Exchange Holdings (ASX:ABE) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Australian Bond Exchange Holdings Ltd (ASX:ABE) » Definitions » GF Value Rank
Comparable Companies
ASX:FFG ASX:EQS ASX:FNX ASX:BIR ASX:ASW ASX:AFA ASX:SWF ASX:RZI MS GS SCHW SHSE:600030 ASX:MQG BSP:BPAC3 SHSE:601066 RJF TW SHSE:601688 HKSE:03908 SHSE:601211
Traded in Other Exchanges
N/A
Address
15 Castlereagh St, Level 19, Sydney, NSW, AUS, 2000
Website
https://www.bondexchange.com.au
Australian Bond Exchange Holdings Ltd is engaged in provision of financial advice and dealing services in the OTC bond market to funds, ADIs and individuals and advisory services to Australian companies. The company generates revenue from Securities trading; Brokerage on transactions as part of financial advice and dealing services division; and Origination and arranging fees.