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Dominion Lending Centres (TSX:DLCG) GF Value Rank

: 9 (As of Today)
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Dominion Lending Centres has the GF Value Rank of 9.

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

For the Mortgage Finance subindustry, Dominion Lending Centres'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.


Dominion Lending Centres GF Value Rank Distribution

For the Banks industry and Financial Services sector, Dominion Lending Centres's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Dominion Lending Centres's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Dominion Lending Centres GF Value Rank Related Terms

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Dominion Lending Centres (TSX:DLCG) Business Description

Dominion Lending Centres logo
Traded in Other Exchanges
2207 - 4th Street SW, Suite 400, Calgary, AB, CAN, T2S 1X1
Dominion Lending Centres Inc is a mortgage brokerage franchisor and mortgage broker data connectivity provider with operations across Canada. The Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc and Newton Connectivity Systems Inc. The company has two operating segments, namely, the Core Business Operations segment and the NonCore Business Asset Management segment. The company generates revenue mainly from franchising and mortgage brokerage services.

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