GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Prospect Resources Ltd (ASX:PSC) » Definitions » GF Value Rank

Prospect Resources (ASX:PSC) GF Value Rank : 0 (As of Jun. 10, 2024)


View and export this data going back to 2009. Start your Free Trial

What is Prospect Resources GF Value Rank?

Prospect Resources 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.

Prospect Resources GF Value Rank Related Terms

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

Prospect Resources (ASX:PSC) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Prospect Resources Ltd (ASX:PSC) » Definitions » GF Value Rank
Comparable Companies
ASX:SPQ ASX:CZR ASX:EG1 ASX:ASO ASX:LLI ASX:TON ASX:CXM ASX:MEU ASX:EV1 ASX:ARV ASX:BHP ASX:RIO LSE:RIO LSE:GLEN BSP:VALE3 ASX:FMG SAU:1211 LSE:AAL GMEXICOB MIC:GMKN
Traded in Other Exchanges
5E8:Germany
Address
33 Richardson Street, Level 2, West Perth, Perth, WA, AUS, 6005
Website
https://www.prospectresources.com.au
Prospect Resources Ltd is an Africa-focused battery minerals company based in Perth with operations in Zimbabwe. It explores lithium and gold deposits. The company projects include Arcadia Lithium Project, Good Days Lithium Project, Penhalonga Gold Project, and Gwanda East Project. Its geographical segment includes Australia and Zimbabwe. The company derives the majority of its revenue from Zimbabwe.

Prospect Resources (ASX:PSC) Headlines