Chamberlin (LSE:CMH) GF Value Rank : 0 (As of May. 18, 2024)

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What is Chamberlin GF Value Rank?

Chamberlin 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.

Chamberlin GF Value Rank Related Terms

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Chamberlin (LSE:CMH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Chamberlin PLC (LSE:CMH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Chuckery Road, Walsall, West Midlands, GBR, WS1 2DU

Website

https://www.chamberlin.co.uk

Chamberlin PLC is engaged in the production and sale of iron castings and light engineering products. The company has organized its business into two operating segments; the Foundries segment and the Engineering segment. The business activities that it carries out through its segments include supplying iron castings in the raw or machined form to a variety of industrial customers and provide manufactured and imported products such as emergency exit doors, and hazardous area lighting systems to distributors and end-users in the safety and security markets.

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