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Lanka Walltiles (COL:LWL.N0000) GF Value Rank : 10 (As of Jun. 23, 2024)


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What is Lanka Walltiles GF Value Rank?

Lanka Walltiles 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 Lanka Walltiles's GF Value Rank

For the Building Products & Equipment subindustry, Lanka Walltiles'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.


Lanka Walltiles's GF Value Rank Distribution in the Construction Industry

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

* The bar in red indicates where Lanka Walltiles's GF Value Rank falls into.



Lanka Walltiles GF Value Rank Related Terms

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


Lanka Walltiles (COL:LWL.N0000) Business Description

Traded in Other Exchanges
N/A
Address
No. 215, Nawala Road, Narahenpita, Colombo, LKA, 05
Lanka Walltiles PLC is a ceramic wall tile manufacturer in Sri Lanka. The company comprises the following business segments: Tiles and Associated Items segment, which manufactures and distributes wall tiles, floor tiles and related products; Biological Assets segment is engaged in the cultivation, processing, and sale of tea and rubber; Aluminum Products segment is engaged in the manufacturing and distribution of aluminum extrusions and allied products through a network of dealers and distributors; and Packaging Materials division, which manufactures and distributes packaging materials. The company caters to both domestic and international markets.

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