Resonance Health (ASX:RHT) GF Value Rank : 0 (As of May. 26, 2024)

View and export this data going back to 1987. Start your Free Trial

What is Resonance Health GF Value Rank?

Resonance 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.

Resonance Health GF Value Rank Related Terms

Thank you for viewing the detailed overview of Resonance Health's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Resonance Health (ASX:RHT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Resonance Health Ltd (ASX:RHT) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

141 Burswood Road, Level 1, Burswood, WA, AUS, 6100

Website

https://www.resonancehealth.com

Resonance Health Ltd is a healthcare company specializing in the development and commercialization of technologies and services for the quantitative analysis of radiological images in a regulated and quality-controlled environment. Its product includes FerriScan, a non-invasive liver diagnostic technology used for the measurement of iron in the liver, and HepaFat-Scan. The company's operating segment includes Services; Research and Development and Corporate. It generates maximum revenue from the Services segment. Geographically, it derives a majority of its revenue from North America and Europe-Middle-East-Africa (EMEA) and also has a presence in Asia/Pacific.

Resonance Health (ASX:RHT) Headlines

No Headlines