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Spectra7 Microsystems (TSXV:SEV) GF Value Rank : 0 (As of Dec. 14, 2024)


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What is Spectra7 Microsystems GF Value Rank?

Spectra7 Microsystems 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.


Spectra7 Microsystems GF Value Rank Related Terms

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Spectra7 Microsystems Business Description

Traded in Other Exchanges
Address
181 Bay Street, Suite 1800, Toronto, ON, CAN, M5J 2T9
Spectra7 Microsystems Inc is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed, and resolution to enable disruptive industrial design for electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers, and other connectivity markets.
Executives
Raouf Youssef Halim Director, Senior Officer
Ebrahim Hani Abunasrah Deemed Insider - 6 Months before becoming Insider
Darren Ma Senior Officer
Brian Douglas Antonen Director
Gerald Joseph Hamilton Senior Officer
John Vettese Director
Robert Dobkin Director
Roger Maggs Director
Ronald James Pasek Director
Andrew Kim Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
John Weaver Mitchell Senior Officer