Acasti Pharma (TSXV:ACST) GF Value Rank : 0 (As of May. 02, 2024)

View and export this data going back to 2011. Start your Free Trial

What is Acasti Pharma GF Value Rank?

Acasti Pharma 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.

Acasti Pharma GF Value Rank Related Terms

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

Acasti Pharma (TSXV:ACST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Acasti Pharma Inc (TSXV:ACST) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ACST:USA A1P0:Germany

Address

3009 Boulevard de la Concorde East, Suite 102, Laval, QC, CAN, H7E 2B5

Website

https://www.acastipharma.com

Acasti Pharma Inc is a late-stage specialty pharma company with drug delivery technologies and drug candidates addressing rare and orphan diseases. Its novel drug delivery technologies have the potential to improve the performance of marketed drugs by achieving faster onset of action, enhanced efficacy, reduced side effects, and more convenient drug delivery all of which could help to increase treatment compliance and improve patient outcomes.