Optimi Health (XCNQ:OPTI) GF Value Rank : 0 (As of May. 15, 2024)

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What is Optimi Health GF Value Rank?

Optimi Health has the GF Value Rank of 0.

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.

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Optimi Health (XCNQ:OPTI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Optimi Health Corp (XCNQ:OPTI) » Definitions » GF Value Rank

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Traded in Other Exchanges

OPTHF:USA 8BN:Germany

Address

1122 Mainland Street, Suite 330, Vancouver, BC, CAN, V6B 5L1

Website

https://www.optimihealth.ca

Optimi Health Corp operates in developing a vertically integrated Canadian functional mushroom brand that focuses on the health and wellness sector. The company has one reportable operating segment being that of the farming, processing and distribution of agrifoods. It also intends to cultivate, extract, process and distribute high-quality strains of fungi products at its facilities located in Princeton, British Columbia.

Executives