Ramsay Health Care (ASX:RHCPA.PFD) GF Value Rank : 10 (As of Apr. 26, 2024)

View and export this data going back to 2005. Start your Free Trial

What is Ramsay Health Care GF Value Rank?

Ramsay Health Care has the GF Value Rank of 10.

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 Ramsay Health Care's GF Value Rank

For the Medical Care Facilities subindustry, Ramsay Health Care'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.

Ramsay Health Care's GF Value Rank Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Ramsay Health Care's GF Value Rank falls into.

Ramsay Health Care GF Value Rank Related Terms

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

Ramsay Health Care (ASX:RHCPA.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Ramsay Health Care Ltd (ASX:RHCPA.PFD) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

RMYHY:USA RMSYF:USA RMY:Germany RHC:Australia

Address

126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000

Website

https://www.ramsayhealth.com

Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.

Ramsay Health Care (ASX:RHCPA.PFD) Headlines

No Headlines