First Prudential Modaraba (KAR:PMI) GF Value Rank : 0 (As of Jun. 04, 2024)

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What is First Prudential Modaraba GF Value Rank?

First Prudential Modaraba 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.

First Prudential Modaraba GF Value Rank Related Terms

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First Prudential Modaraba (KAR:PMI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » First Prudential Modaraba (KAR:PMI) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

3rd Floor, Horizon Vista, Plot No: Commercial 10, Block No: 4, Clifton, Scheme No.5, Karachi, PAK

Website

https://www.firstprudentialmodaraba.com

First Prudential Modaraba is managed by Prudential Capital Management Limited. It provides various Islamic funding & businesses including ijarah financing, deployment of the fund in musharika, morabaha, and investment in securities. It provides financial assistance for working capital needs, Ijaraha of all types of assets with special emphasis on vehicle and industrial machinery, including securitization of lease portfolio of leasing companies and commercial activities including syndication and leveraged leasing, underwriting of public issue of shares.

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