Difference Capital Financial (Difference Capital Financial) GF Value Rank : 0 (As of Jun. 20, 2024)

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What is Difference Capital Financial GF Value Rank?

Difference Capital Financial 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.

Difference Capital Financial GF Value Rank Related Terms

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Difference Capital Financial (Difference Capital Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Difference Capital Financial Inc (GREY:TNTHF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 Front Street West, Suite 2504, Toronto, ON, CAN, M5V 3L1

Website

http://www.differencecapital.com

Difference Capital Financial Inc is a Canada-based investment company. It is concentrated on creating shareholder value through strategic investments in growth companies. It aims to generate medium to long-term capital growth by investing in a diversified investment portfolio consisting of securities of private companies, particularly in the technology, media and healthcare sectors. The company provides debt and equity growth capital to technology and media related companies.

Difference Capital Financial (Difference Capital Financial) Headlines

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