Major Drilling Group International (TSX:MDI) GF Value Rank : 7 (As of Apr. 25, 2024)

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What is Major Drilling Group International GF Value Rank?

Major Drilling Group International has the GF Value Rank of 7.

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 Major Drilling Group International's GF Value Rank

For the Other Industrial Metals & Mining subindustry, Major Drilling Group International'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.

Major Drilling Group International's GF Value Rank Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Major Drilling Group International's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Major Drilling Group International's GF Value Rank falls into.

Major Drilling Group International GF Value Rank Related Terms

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Major Drilling Group International (TSX:MDI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Major Drilling Group International Inc (TSX:MDI) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

MJDLF:USA 3MJ:Germany

Address

111 St. George Street, Suite 100, Moncton, NB, CAN, E1C 1T7

Website

https://www.majordrilling.com

Major Drilling Group International Inc is engaged in the business of contract drilling, and it provides services to companies that are involved in mining and mineral exploration. It offers surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, and underground percussive/long-hole drilling services, as well as various drilling-related mine services. Its geographical segments are Canada - the United States; South and Central America; and Australasia and Africa, of which most of its revenue comes from Canada - the United States.

Major Drilling Group International (TSX:MDI) Headlines

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