CSL Finance (BOM:530067) GF Value Rank : 8 (As of Jun. 06, 2024)

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What is CSL Finance GF Value Rank?

CSL Finance has the GF Value Rank of 8.

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 CSL Finance's GF Value Rank

For the Credit Services subindustry, CSL Finance'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.

CSL Finance's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, CSL Finance's GF Value Rank distribution charts can be found below:

* The bar in red indicates where CSL Finance's GF Value Rank falls into.

CSL Finance GF Value Rank Related Terms

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

CSL Finance (BOM:530067) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » CSL Finance Ltd (BOM:530067) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CSLFINANCE:India

Address

World Trade Tower, 716-717, 7th Floor, Tower B, Sector 16, Noida, UP, IND, 201301

Website

https://www.cslfinance.in

CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big-ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.

CSL Finance (BOM:530067) Headlines

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