Gensol Engineering (NSE:GENSOL) GF Value Rank : 2 (As of Dec. 12, 2024)

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What is Gensol Engineering GF Value Rank?

Gensol Engineering 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 Gensol Engineering's GF Value Rank

For the Solar subindustry, Gensol Engineering'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.

Gensol Engineering's GF Value Rank Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Gensol Engineering's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Gensol Engineering's GF Value Rank falls into.

Gensol Engineering GF Value Rank Related Terms

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Gensol Engineering Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Gensol Engineering Ltd (NSE:GENSOL) » Definitions » GF Value Rank

Traded in Other Exchanges

542851:India

Address

S G Road, Block - A, 15th Floor, Westgate Business Bay, Jivraj Park, Makarba, Ahmedabad, GJ, IND, 380051

Website

https://www.gensol.in

Gensol Engineering Ltd is a renewable energy solutions provider focused on end-to-end solar engineering, procurement, and construction projects. It is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across various countries, including India. The company has two operating segments namely Engineering, advisory & EPC of Solar Power Projects, and Leasing of cars. It generates the majority of its revenue from the Engineering, advisory & EPC of Solar Power Projects segment.

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