Presco (NSA:PRESCO) GF Value Rank : 0 (As of Jun. 16, 2024)

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What is Presco GF Value Rank?

Presco 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.

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Presco (NSA:PRESCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Presco PLC (NSA:PRESCO) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Km 22 Benin / Sapele Road, Ikpoba-Okha Local Government Area, Obaretin Estate, Benin City, Edo State, NGA

Website

http://www.presco-plc.com

Presco PLC is engaged in the cultivation of oil palms and the extraction, refining and fractioning of crude palm oil into vegetable oil and palm stearin. It produces specialty fats and oils. The company's products include Special Palm Oil, Refined, Bleached and Deodorised Palm Oil, palm olein, palm stearin, palm fatty acid distillate, palm kernel oil (crude and refined), and palm kernel cake. It generates revenue from the sales of crude and refined products , Sales of Fresh Fruit Bunches, and Mill by-products. Geographically the group has a business presence in Nigeria and Germany, of which key revenue is derived from operations within Nigeria.

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