ExlService Holdings (FRA:LHV) GF Value Rank : 10 (As of May. 01, 2024)

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What is ExlService Holdings GF Value Rank?

ExlService Holdings 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 ExlService Holdings's GF Value Rank

For the Information Technology Services subindustry, ExlService Holdings'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.

ExlService Holdings's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, ExlService Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where ExlService Holdings's GF Value Rank falls into.

ExlService Holdings GF Value Rank Related Terms

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ExlService Holdings (FRA:LHV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ExlService Holdings Inc (FRA:LHV) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EXLS:USA

Address

320 Park Avenue, 29th Floor, New York, NY, USA, 10022

Website

https://www.exlservice.com

ExlService Holdings Inc. is a business process management company that provides digital operations and analytical services to clients driving enterprise-scale business transformation initiatives that leverage company's deep expertise in analytics, AI, ML and cloud. The company offers business process outsourcing and automation services, and data-driven insights to customers in multiple industries. The company operates through four segments based on the products and services offered and markets served: Insurance, Healthcare, Emerging, Analytics. The vast majority of the company's revenue is earned in the United States, and more than half of its revenue comes from Analytics segment.

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