GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Verastem Inc (NAS:VSTM) » Definitions » GF Value Rank

Verastem (Verastem) GF Value Rank : 0 (As of May. 14, 2024)


View and export this data going back to 2012. Start your Free Trial

What is Verastem GF Value Rank?

Verastem 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.


Verastem GF Value Rank Related Terms

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


Verastem (Verastem) Business Description

Traded in Other Exchanges
Address
117 Kendrick Street, Suite 500, Needham, MA, USA, 02494
Verastem Inc is late-stage development biopharmaceutical company, committed to advancing new medicines for patients battling cancer. Its pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition.
Executives
Robert E. Gagnon officer: Chief Financial Officer C/O BIOGEN IDEC INC., 133 BOSTON POST ROAD, WESTON MA 02493
Daniel Calkins officer: Vice President of Finance C/O VERASTEM, INC., 117 KENDRICK STREET, SUITE 500, NEEDHAM MA 02494
Brian M Stuglik director C/O VERASTEM, INC., 117, NEEDHAM MA 02494
Dan Paterson officer: Chief Operating Officer 215 FIRST STREET, SUITE 440, CAMBRIDGE MA 02142
Karin Anna Tollefson director C/O VERASTEM, INC., 117 KENDRICK STREET, SUITE 500, NEEDHAM MA 02494
Anil Kapur director 275 MADISON AVE, SUITE 702, NEW YORK NY 10016
Bvf I Gp Llc other: See Explanation of Responses 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Gp Holdings Llc 10 percent owner 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Ii Gp Llc other: See Explanation of Responses 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Partners Os Ltd. other: See Explanation of Responses P.O. BOX 309 UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Biotechnology Value Trading Fund Os Lp other: See Explanation of Responses P.O. BOX 309 UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Mark N Lampert 10 percent owner 1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104
Biotechnology Value Fund Ii Lp other: See Explanation of Responses 44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104
Bvf Partners L P/il 10 percent owner 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Inc/il 10 percent owner 44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104