Earth Gen-Biofuel (Earth Gen-Biofuel) GF Value Rank : 0 (As of May. 15, 2024)

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What is Earth Gen-Biofuel GF Value Rank?

Earth Gen-Biofuel 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.

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Earth Gen-Biofuel (Earth Gen-Biofuel) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Earth Gen-Biofuel Inc (OTCPK:EGBB) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

1375 Front Street NE, Salem, OR, USA, 97301

Website

https://earthgenbiofuel.com

Earth Gen-Biofuel Inc is engaged in the manufacturing of Park Model RV's. Park Model RVs are manufactured homes that are built to qualify as an RV for building regulations but are constructed as permanently placed homes. The company develops plans for homes that could serve the need for residents for the unsheltered housing crisis in many cities through utilizing technology to construct affordable living units.