Blackboxstocks (STU:LI50) GF Value Rank : 3 (As of Jun. 22, 2024)

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What is Blackboxstocks GF Value Rank?

Blackboxstocks has the GF Value Rank of 3.

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 Blackboxstocks's GF Value Rank

For the Software - Application subindustry, Blackboxstocks'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.

Blackboxstocks's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Blackboxstocks's GF Value Rank distribution charts can be found below:

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

Blackboxstocks GF Value Rank Related Terms

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Blackboxstocks (STU:LI50) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Blackboxstocks Inc (STU:LI50) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BLBX:USA

Address

5430 LBJ Freeway, Suite 1485, Dallas, TX, USA, 75240

Website

https://www.blackboxstocks.com

Blackboxstocks Inc is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Its web-based software (the Blackbox System) employs predictive technology enhanced by artificial intelligence to find volatility and unusual market activity that may result in a rapid change in the price of a stock or option. It provides users with a fully interactive social media platform that is integrated into its dashboard, enabling users to exchange information and ideas quickly and efficiently through a common network. It introduced a live audio/video feature that allows members to broadcast on their channels to share trading strategies and market insight within the Blackbox community.

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