Johns Lyng Group (ASX:JLG) GF Value Rank : 4 (As of Dec. 14, 2024)

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What is Johns Lyng Group GF Value Rank?

Johns Lyng Group has the GF Value Rank of 4.

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 Johns Lyng Group's GF Value Rank

For the Engineering & Construction subindustry, Johns Lyng 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.

Johns Lyng Group's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Johns Lyng Group's GF Value Rank distribution charts can be found below:

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

Johns Lyng Group GF Value Rank Related Terms

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Johns Lyng Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Johns Lyng Group Ltd (ASX:JLG) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Williamsons Road, Doncastor, Melbourne, VIC, AUS, 3108

Website

https://www.johnslyng.com.au

Johns Lyng Group carries out commercial and residential rebuilding and restoration for the insurance industry. It co-ordinates construction work for general building insurance claims and catastrophic events throughout Australia, the US, and New Zealand. Its subsidiary companies support its main operations. These include residential and commercial facility managers, heating, ventilation, and cooling, carpet drying, and shopfitting, among others.

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