RSD Finance (BOM:539875) GF Value Rank : 10 (As of May. 26, 2024)

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What is RSD Finance GF Value Rank?

RSD Finance has the GF Value Rank of 10.

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 RSD Finance's GF Value Rank

For the Asset Management subindustry, RSD Finance'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.

RSD Finance's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, RSD Finance's GF Value Rank distribution charts can be found below:

* The bar in red indicates where RSD Finance's GF Value Rank falls into.

RSD Finance GF Value Rank Related Terms

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

RSD Finance (BOM:539875) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » RSD Finance Ltd (BOM:539875) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ramdas Bhatta, Bistupur, Holding No - 4, The Alcor Hotel, Purbi Singhbhum, Jamshedpur, JH, IND, 831001

Website

https://www.rsdfinancelimited.com

RSD Finance Ltd is an India-based company non-banking financial company that invests in the capital market as well as in the money market. The company also provides Job Work services. It operates only in India. The segments of the group are the Investment & Finance segment and Job Work segment, of which key revenue is derived from the Investment & Finance segment.

RSD Finance (BOM:539875) Headlines

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