American Potash (American Potash) GF Value Rank : 0 (As of May. 23, 2024)

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What is American Potash GF Value Rank?

American Potash 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.

American Potash GF Value Rank Related Terms

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American Potash (American Potash) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » American Potash Corp (OTCPK:APCOF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

2P3:Germany KCL:Canada

Address

1199 West Hastings Street, Suite 1100, Vancouver, BC, CAN, V6E 3T5

Website

https://www.americanpotash.com

American Potash Corp is a Canada-based mineral exploration company. It is engaged in discovering and developing critical minerals in the United States, including potash, bromine and lithium. The company's principal projects include the Paradox Basin Brine and Potash Project and Green River Potash and Lithium Project.

American Potash (American Potash) Headlines

From GuruFocus

American Potash Receives Drill Permits for Three Exploratory Wells on its Green River Potash and Lithium Project, Paradox Basin, Utah

By Marketwired • 10-04-2023