Gul Ahmed Textile Mills (KAR:GATM) GF Value Rank : 4 (As of Jun. 05, 2024)

View and export this data going back to 1970. Start your Free Trial

What is Gul Ahmed Textile Mills GF Value Rank?

Gul Ahmed Textile Mills has the GF Value Rank of 4.

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 Gul Ahmed Textile Mills's GF Value Rank

For the Textile Manufacturing subindustry, Gul Ahmed Textile Mills'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.

Gul Ahmed Textile Mills's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Gul Ahmed Textile Mills's GF Value Rank falls into.

Gul Ahmed Textile Mills GF Value Rank Related Terms

Thank you for viewing the detailed overview of Gul Ahmed Textile Mills's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Gul Ahmed Textile Mills (KAR:GATM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Gul Ahmed Textile Mills Ltd (KAR:GATM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No.H-7, Landhi Industrial Area, Landhi, Karachi, SD, PAK, 75120

Website

https://www.gulahmed.com

Gul Ahmed Textile Mills Ltd is engaged in the manufacturing and selling of textile products. The company's segments are Spinning which includes the production of different yarn using natural and artificial fibers, Weaving segment caters to in-house requirements for home textile, retail and distribution, and apparel division, Retail and Distribution segment is involved in retail sales through a chain of IDEAS retails outlets and its distribution channels. and Processing, Home Textile and Apparel segment deals in processing greige fabrics into various types of finished fabrics. It generates a majority of its revenue from the Home Textile segment.

Gul Ahmed Textile Mills (KAR:GATM) Headlines

No Headlines