GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » ACP Energy PLC (FRA:DU5) » Definitions » GF Value Rank

ACP Energy (FRA:DU5) GF Value Rank : 0 (As of Jun. 06, 2024)


View and export this data going back to 2022. Start your Free Trial

What is ACP Energy GF Value Rank?

ACP Energy 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.


ACP Energy GF Value Rank Related Terms

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


ACP Energy (FRA:DU5) Business Description

Traded in Other Exchanges
N/A
Address
21 High Street, Lutterworth, GBR, LE17 4AT
ACP Energy PLC was formed to acquire one or more target companies or businesses. The resulting investment may be in a company, partnership, special purpose vehicle or joint venture. It will focus on opportunities within the upstream oil and gas industry, such as exploration, appraisal, development or production of oil and gas, particularly projects with identified oil and/or natural gas reserves and/or resources.

ACP Energy (FRA:DU5) Headlines

No Headlines