Westgold Resources (Westgold Resources) GF Value Rank : 3 (As of Apr. 28, 2024)

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What is Westgold Resources GF Value Rank?

Westgold Resources has the GF Value Rank of 3.

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 Westgold Resources's GF Value Rank

For the Gold subindustry, Westgold Resources'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.

Westgold Resources's GF Value Rank Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Westgold Resources's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Westgold Resources's GF Value Rank falls into.

Westgold Resources GF Value Rank Related Terms

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Westgold Resources (Westgold Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Westgold Resources Ltd (OTCPK:WGXRF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

0W2:Germany WGX:Australia

Address

200 St Georges Terrace, Level 6, Perth, WA, AUS, 6000

Website

https://www.westgold.com.au

Westgold Resources Ltd is engaged in the exploration, development, and operation of gold mines, predominantly in Western Australia. The company comprises the following reportable segments - Murchison Operations, Bryah Operations and others. Murchison Operations segment contributes to the vast majority of revenue.