Promotion and Development (XMAU:PAD.N0000) GF Value Rank : 6 (As of Jun. 22, 2024)

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What is Promotion and Development GF Value Rank?

Promotion and Development has the GF Value Rank of 6.

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 Promotion and Development's GF Value Rank

For the Conglomerates subindustry, Promotion and Development'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.

Promotion and Development's GF Value Rank Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Promotion and Development's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Promotion and Development's GF Value Rank falls into.

Promotion and Development GF Value Rank Related Terms

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Promotion and Development (XMAU:PAD.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Promotion and Development Ltd (XMAU:PAD.N0000) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

Dias Pier, Le Caudan Waterfront, 8th Floor, Port Louis, MUS

Website

https://www.promotionanddevelopment.com

Promotion and Development Ltd is an investment company. Its business activity consists of investments in shares, property development, and the supply and provision of services associated with such activities. The company's three segments include Property; rental of properties, Shares; Dividend Income; and Security: Security and property protection services and sales of equipment. The company earns majority of its revenue from security segment.

Promotion and Development (XMAU:PAD.N0000) Headlines

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