GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Sweet Earth Holdings Corp (STU:1KZ0) » Definitions » GF Value Rank

Sweet Earth Holdings (STU:1KZ0) GF Value Rank : 0 (As of May. 27, 2024)


View and export this data going back to 2020. Start your Free Trial

What is Sweet Earth Holdings GF Value Rank?

Sweet Earth Holdings 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.


Sweet Earth Holdings GF Value Rank Related Terms

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


Sweet Earth Holdings (STU:1KZ0) Business Description

Traded in Other Exchanges
Address
903-700 West Pender Street, Vancouver, BC, CAN, V6C 1G8
Sweet Earth Holdings Corp is engaged in the business of the sale of hemp pre-roll and skin care products. 'It operates in a single segment, which includes cultivation and processing of hemp cannabidiol in the state of Oregon, USA, and in Cadiz, Spain'.

Sweet Earth Holdings (STU:1KZ0) Headlines

No Headlines