GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » AVT Natural Products Ltd (BOM:519105) » Definitions » GF Value Rank

AVT Natural Products (BOM:519105) GF Value Rank : 10 (As of May. 13, 2024)


View and export this data going back to 2001. Start your Free Trial

What is AVT Natural Products GF Value Rank?

AVT Natural Products has the GF Value Rank of 10.

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 AVT Natural Products's GF Value Rank

For the Specialty Chemicals subindustry, AVT Natural Products'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.


AVT Natural Products's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, AVT Natural Products's GF Value Rank distribution charts can be found below:

* The bar in red indicates where AVT Natural Products's GF Value Rank falls into.



AVT Natural Products GF Value Rank Related Terms

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


AVT Natural Products (BOM:519105) Business Description

Traded in Other Exchanges
Address
60, Rukmani Lakshmipathy Salai, Egmore, Chennai, TN, IND, 600 008
AVT Natural Products Ltd is engaged in the business segment of Food & Feed Ingredients from Natural Raw materials. It manufactures plant-based extracts and natural ingredients solutions for the food, beverage, animal nutrition and nutraceutical industries. There are five business categories: Marigold Extracts for Eye Care, Food Coloring & Poultry Pigmentation; Spice oleoresins and Oils for Food Colouring and Flavouring, Value added Teas - Decaffeinated Teas and Instant Teas; Animal Health & Nutrition Products and Rosemary extract. Geographically, the group has a business presence in India and other countries, of which key revenue is generated from other countries.

AVT Natural Products (BOM:519105) Headlines

No Headlines