BBGI Global Infrastructure (LSE:BBGI) GF Value Rank : 5 (As of May. 15, 2024)

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What is BBGI Global Infrastructure GF Value Rank?

BBGI Global Infrastructure has the GF Value Rank of 5.

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 BBGI Global Infrastructure's GF Value Rank

For the Asset Management subindustry, BBGI Global Infrastructure'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.

BBGI Global Infrastructure's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BBGI Global Infrastructure's GF Value Rank distribution charts can be found below:

* The bar in red indicates where BBGI Global Infrastructure's GF Value Rank falls into.

BBGI Global Infrastructure GF Value Rank Related Terms

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BBGI Global Infrastructure (LSE:BBGI) Business Description

Industry

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BBGIl:UK

Address

EBBC, 6E, route de Treves, Grand Duchy, Senningerberg, LUX, L-2633

Website

https://www.bb-gi.com

BBGI Global Infrastructure SA is an infrastructure investment company. The company invests in a diversified portfolio of infrastructure assets, including public-private partnerships, private finance initiatives, and construction assets in the transport, healthcare, education, justice, and other services sectors across the UK, North America, Australia, Continental Europe and Holding Activities. The group invests in projects whose revenue comes from the public sector or government and non-governmental organizations which carry appropriate credit risk. The firm's main source of revenue is income from investments.