Svam Software (BOM:523722) GF Value Rank : 2 (As of Jun. 20, 2024)

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What is Svam Software GF Value Rank?

Svam Software has the GF Value Rank of 2.

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 Svam Software's GF Value Rank

For the Software - Application subindustry, Svam Software'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.

Svam Software's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Svam Software's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Svam Software's GF Value Rank falls into.

Svam Software GF Value Rank Related Terms

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

Svam Software (BOM:523722) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Svam Software Ltd (BOM:523722) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

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Address

224 G/F, Swayam Seva Co-Operative Housing Society Ltd, Jhilmil, New Delhi, IND, 110032

Website

https://www.svamsoftwareltd.in

Svam Software Ltd is a software development company in India. The company's services include software development, sale, and purchase of software, hardware and all accessories related to computers. It deals in all computer-related works like its hardware and software and accessories. The company offers services in the areas of turnkey software projects, communication and networking, system re-engineering, corporate and professional programs, software conversion, migration and redesign, GIS, customised software development, product development, facility management, downsizing and system integration.

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