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PT Centratama Telekomunikasi Indonesia Tbk (ISX:CENT) GF Value Rank : 2 (As of May. 05, 2024)


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What is PT Centratama Telekomunikasi Indonesia Tbk GF Value Rank?

PT Centratama Telekomunikasi Indonesia Tbk has the GF Value Rank of 2.

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 PT Centratama Telekomunikasi Indonesia Tbk's GF Value Rank

For the Telecom Services subindustry, PT Centratama Telekomunikasi Indonesia Tbk'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.


PT Centratama Telekomunikasi Indonesia Tbk's GF Value Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, PT Centratama Telekomunikasi Indonesia Tbk's GF Value Rank distribution charts can be found below:

* The bar in red indicates where PT Centratama Telekomunikasi Indonesia Tbk's GF Value Rank falls into.



PT Centratama Telekomunikasi Indonesia Tbk GF Value Rank Related Terms

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


PT Centratama Telekomunikasi Indonesia Tbk (ISX:CENT) Business Description

Traded in Other Exchanges
N/A
Address
Jalan KH. Mas Mansyur Kav. 126, TCC Batavia Tower One 16th and 19th Floor, Jakarta Pusat, Jakarta, IDN, 10220
PT Centratama Telekomunikasi Indonesia Tbk is an Indonesia-based company mainly engaged in provisioning telecommunication infrastructure solutions and services. It operates through the following segments: Towers Lease, and In-Building-Coverage Lease & Internet Services. It provides services, leases, and management of telecommunication towers and tools, consultation services in the telecommunication field, management consulting services, and business administration. Geographically, it operates through the region of Indonesia and derives revenue from the Tower lease segment.