GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Addex Therapeutics Ltd (NAS:ADXN) » Definitions » GF Value Rank

Addex Therapeutics (Addex Therapeutics) GF Value Rank : 4 (As of May. 14, 2024)


View and export this data going back to 2020. Start your Free Trial

What is Addex Therapeutics GF Value Rank?

Addex Therapeutics has the GF Value Rank of 4.

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 Addex Therapeutics's GF Value Rank

For the Biotechnology subindustry, Addex Therapeutics'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.


Addex Therapeutics's GF Value Rank Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Addex Therapeutics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Addex Therapeutics's GF Value Rank falls into.



Addex Therapeutics GF Value Rank Related Terms

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


Addex Therapeutics (Addex Therapeutics) Business Description

Traded in Other Exchanges
Address
Chemin des Aulx 12, Plan-les-Ouates, P.O. Box 68, Geneva, CHE, 1202
Addex Therapeutics Ltd is a biopharmaceutical company. The company is focused on the development and commercialization of an emerging class of novel orally available small molecule drugs known as allosteric modulators. The company's geographical area of operations includes Switzerland and Europe.

Addex Therapeutics (Addex Therapeutics) Headlines

From GuruFocus

Enamine Extend Collaboration With Prominent Swiss Biotech

By Business Wire Business Wire 02-24-2021