Cherat Cement Co (KAR:CHCC) GF Value Rank : 5 (As of Apr. 29, 2025)

View and export this data going back to 1985. Start your Free Trial

What is Cherat Cement Co GF Value Rank?

Cherat Cement Co has the GF Value Rank of 5.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It 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.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Cherat Cement Co's GF Value Rank

For the Building Materials subindustry, Cherat Cement Co'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.

Cherat Cement Co's GF Value Rank Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Cherat Cement Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Cherat Cement Co's GF Value Rank falls into.

Save Embed

;

Save Embed

;

Cherat Cement Co GF Value Rank Related Terms

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

Cherat Cement Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Cherat Cement Co Ltd (KAR:CHCC) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Beaumont Road, Modern Motors House, Karachi, SD, PAK, 75530

Website

https://www.gfg.com.pk

Cherat Cement Co Ltd is a Pakistan-based company engaged in the manufacturing, marketing and sale of Ordinary Portland Cement. The company operates in one operating segment namely manufacturing, marketing, and sale of cement. The plant of the company is located at Village Lakrai, District Nowshera, Khyber Pakhtunkhwa (KPK) province.

Cherat Cement Co Headlines

No Headlines