Rostelecom PJSC (FRA:RTL) GF Value Rank : 10 (As of Apr. 26, 2024)

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What is Rostelecom PJSC GF Value Rank?

Rostelecom PJSC 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 Rostelecom PJSC's GF Value Rank

For the Telecom Services subindustry, Rostelecom PJSC'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.

Rostelecom PJSC's GF Value Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Rostelecom PJSC's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Rostelecom PJSC's GF Value Rank falls into.

Rostelecom PJSC GF Value Rank Related Terms

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Rostelecom PJSC (FRA:RTL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Rostelecom PJSC (FRA:RTL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Goncharnaya Street, 30 (Building 1), Moscow, RUS, 115172

Website

http://www.rostelecom.ru

Rostelecom PJSC had a monopoly on domestic and international long-distance telephone services in Russia until the market was deregulated on Jan. 1, 2006, allowing competition. The firm still has over 50% market share in the sector. It carries over 10 billion domestic and over 4.8 billion international long-distance minutes of traffic. Rostelecom also runs other businesses, including leased line services, intelligent network services, and customer equipment servicing.