Arch Therapeutics (Arch Therapeutics) GF Value Rank : 2 (As of May. 26, 2024)

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What is Arch Therapeutics GF Value Rank?

Arch Therapeutics has the GF Value Rank of 2.

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 Arch Therapeutics's GF Value Rank

For the Biotechnology subindustry, Arch 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.

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

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

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

Arch Therapeutics GF Value Rank Related Terms

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Arch Therapeutics (Arch Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arch Therapeutics Inc (OTCPK:ARTH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

235 Walnut Street, Suite 6, Framingham, MA, USA, 01702

Website

https://www.archtherapeutics.com

Arch Therapeutics Inc is a development-stage biotechnology company. It focuses on developing products that manage surgery and interventional care faster and safer by using a novel approach to stop bleeding, control leaking, and provide other advantages during surgery and trauma care. The company's primary product candidate, collectively known as the AC5 Devices (AC5), is designed to achieve hemostasis in surgical procedures. The company operates its business operations in the United States.

Executives

Terrence W Norchi	director, officer: President & CEO	C/O ARCH THERAPEUTICS, INC., PO BOX 748, NATICK MA 01760
Michael S Abrams	officer: CFO and Treasurer	64 RAMSHEAD ROAD, RAYNHAM MA 02767
Laurence Hicks	director	C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
Guy L. Fish	director	C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
Dan Yrigoyen	officer: Vice President, Sales	C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
James R Sulat	director
Punit Dhillon	director	5820 NANCY RIDGE DRIVE, SAN DIEGO CA 92121
Richard E Davis	officer: CFO & Treasurer
Avtar S Dhillon	director	C/O GENETRONICS INC, 11199 SORRENTO VALLEY ROAD, SAN DIEGO CA 92121
Arthur L Rosenthal	director	100 CYBERONICS BLVD., HOUSTON TX 77058
Alan Barber	officer: Chief Financial Officer	C/O ARCH THERAPEUTICS, INC., PO BOX 748, NATICK MA 01760
William M Cotter	officer: Chief Operating Officer	C/O CLOSURE MEDICAL CORP, 5250 GREEN DAIRY RD, RALEIGH NC 27616