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Montanaro UK Smaller Inv Tr (CHIX:MTUL) GF Value Rank : 0 (As of Jun. 09, 2024)


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What is Montanaro UK Smaller Inv Tr GF Value Rank?

Montanaro UK Smaller Inv Tr 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.

Montanaro UK Smaller Inv Tr GF Value Rank Related Terms

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Montanaro UK Smaller Inv Tr (CHIX:MTUL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Montanaro UK Smaller Companies Inv Tr PLC (CHIX:MTUl) » Definitions » GF Value Rank
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Traded in Other Exchanges
MTU:UK
Address
65 Gresham Street, 6th Floor, London, GBR, EC2V 7NQ
Website
https://www.montanaro.co.uk
Montanaro UK Smaller Companies Inv Tr PLC is a United Kingdom-based company. Its investment objective is capital appreciation through investing in small quoted companies, which are listed on the London Stock Exchange or traded on the Alternative Investment Market ( AIM) and to outperform its benchmark, the Numis Smaller Companies Index. The company seeks to achieve its objective by investing in a diversified portfolio of quoted UK small companies.

Montanaro UK Smaller Inv Tr (CHIX:MTUL) Headlines