CML Microsystems (STU:92M) GF Value Rank : 4 (As of Jun. 24, 2024)

View and export this data going back to 2017. Start your Free Trial

What is CML Microsystems GF Value Rank?

CML Microsystems has the GF Value Rank of 4.

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 CML Microsystems's GF Value Rank

For the Semiconductors subindustry, CML Microsystems'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.

CML Microsystems's GF Value Rank Distribution in the Semiconductors Industry

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

* The bar in red indicates where CML Microsystems's GF Value Rank falls into.

CML Microsystems GF Value Rank Related Terms

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

CML Microsystems (STU:92M) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » CML Microsystems PLC (STU:92M) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CML:UK 92M:Germany

Address

Oval Park, Langford, Maldon, Essex, GBR, CM9 6WG

Website

https://www.cmlmicroplc.com

CML Microsystems PLC designs manufacture and markets a range of semiconductors for industrial and professional applications within the storage, wireless, and wireline communications market areas. It operates internationally with subsidiaries across the United Kingdom, the Rest of Europe, the Americas, and the Far East. The company is focused only on reporting segment, the Semiconductor Components segment. The semiconductor segment focuses on three main market areas: storage, wireless, and wireline telecom. Geographically, it derives a majority of its revenue from the Far East.

CML Microsystems (STU:92M) Headlines

No Headlines