Panama Petrochem (BOM:524820) GF Value Rank : 10 (As of May. 22, 2024)

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What is Panama Petrochem GF Value Rank?

Panama Petrochem 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 Panama Petrochem's GF Value Rank

For the Oil & Gas Refining & Marketing subindustry, Panama Petrochem'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.

Panama Petrochem's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Panama Petrochem's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Panama Petrochem's GF Value Rank falls into.

Panama Petrochem GF Value Rank Related Terms

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Panama Petrochem (BOM:524820) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

PANAMAPET:India

Address

24, Turner Road, No. 401, Aza House, Next to Andhra Bank, Bandra (West), Mumbai, MH, IND, 400 050

Website

https://www.panamapetro.com

Panama Petrochem Ltd manufactures and exports petroleum specialty products. Its products are white oil/liquid paraffin oil, petroleum jelly, transformer oil, rubber process oil, industrial oils and greases, drilling fluids, and others. The products are used in inks and resins, printing, textiles, rubber, pharmaceuticals, cosmetics, power, cables, and for other industrial purposes. The geographical segment of the sales is divided into two segments Domestic and Overseas.

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