Aarey Drugs & Pharmaceuticals (BOM:524412) GF Value Rank : 5 (As of May. 17, 2024)

View and export this data going back to 1994. Start your Free Trial

What is Aarey Drugs & Pharmaceuticals GF Value Rank?

Aarey Drugs & Pharmaceuticals has the GF Value Rank of 5.

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 Aarey Drugs & Pharmaceuticals's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals'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.

Aarey Drugs & Pharmaceuticals's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Aarey Drugs & Pharmaceuticals's GF Value Rank falls into.

Aarey Drugs & Pharmaceuticals GF Value Rank Related Terms

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

Aarey Drugs & Pharmaceuticals (BOM:524412) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Aarey Drugs & Pharmaceuticals Ltd (BOM:524412) » Definitions » GF Value Rank

Traded in Other Exchanges

AAREYDRUGS:India

Address

340/348, Narshi Natha Street, 107, Sahakar Bhavan, Masjid, Mumbai, MH, IND, 400 009

Website

http://www.aareydrugs.com

Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, BMD among others. The company principally carries its business operations in India.

Aarey Drugs & Pharmaceuticals (BOM:524412) Headlines

No Headlines