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Valson Industries (BOM:530459) GF Value Rank : 10 (As of May. 25, 2024)


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What is Valson Industries GF Value Rank?

Valson Industries has the GF Value Rank of 10.

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 Valson Industries's GF Value Rank

For the Textile Manufacturing subindustry, Valson Industries'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.


Valson Industries's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Valson Industries's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Valson Industries's GF Value Rank falls into.



Valson Industries GF Value Rank Related Terms

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Valson Industries (BOM:530459) Business Description

Traded in Other Exchanges
N/A
Address
Sir M. V. Road, Unit No.28, Ground Floor, Building No. 6, Mittal Industrial Estate, Andheri (East), Mumbai, MH, IND, 400059
Valson Industries Ltd is an Indian company engaged in the business of Polyester Dyed Yarn and processors of Cotton and other fancy yarn. The company is a manufacturer, exporter of Polyester Texturized, Twisted, Nylon, Spun, Fancy, Cellulosic Dyed yarns and processors (Dyer) of polyester, viscose,. The principal business activities of the company are Manufacture of synthetic or artificial filament yarn, tenacity yarn whether or not textured including high tenacity yarn. The single business segment is Yarn. The majority of the revenue is from domestic sales of texturized, twisted, Dyed & Fancy Yarn. Its products are used in a range of applications, including shirting, suiting's, label, upholstery, hosiery, furnishings, automotive, and ready-made garments industries.

Valson Industries (BOM:530459) Headlines

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