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Vishal Fabrics (BOM:538598) GF Value Rank : 8 (As of Jun. 18, 2024)


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What is Vishal Fabrics GF Value Rank?

Vishal Fabrics has the GF Value Rank of 8.

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 Vishal Fabrics's GF Value Rank

For the Textile Manufacturing subindustry, Vishal Fabrics'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.


Vishal Fabrics's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vishal Fabrics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Vishal Fabrics's GF Value Rank falls into.



Vishal Fabrics GF Value Rank Related Terms

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Vishal Fabrics (BOM:538598) Business Description

Traded in Other Exchanges
N/A
Address
Bopal - Ambli Road, Shanti Corporate House, Near Hira Rupa Hall, Bopal, Ahmedabad, GJ, IND, 380058
Vishal Fabrics Ltd is an Indian company engaged in the business of manufacturing and sale of textile. Its activities include dying, printing, and processing of fabrics of its own and also on job work basis. The company mainly procures grey fabric and dyes, and prints. The company sells Manufactured goods; which includes fabric sales, grey fabric sales, and yarn sales and Trading goods; which include chips sales. It also offers services which include Job work sales. The group operates its business primarily in India.

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