Nova Mentis Life Science (Nova Mentis Life Science) GF Value Rank : 0 (As of Jun. 08, 2024)

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What is Nova Mentis Life Science GF Value Rank?

Nova Mentis Life Science 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.

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Nova Mentis Life Science (Nova Mentis Life Science) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Nova Mentis Life Science Corp (OTCPK:NMLSF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HN3Q:Germany NOVA:Canada

Address

700-838 West Hastings Street, Vancouver, BC, CAN, V6C 0A6

Website

https://www.novamentis.ca

Nova Mentis Life Science Corp is a Canadian-based biotechnology company. It is engaged in developing diagnostics and psilocybin-based therapeutics for neuroinflammatory disorders. Nova uses psilocybin in the treatment of Fragile X Syndrome (FXS). The company's goal is to diagnose and treat debilitating chronic conditions that have unmet medical needs such as autism spectrum disorder (ASD) and FXS. It has one industry segment, being research and development of psilocybin, and in one geographic area, which is Canada.