GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Step Two Corp Ltd (BOM:531509) » Definitions » GF Value Rank

Step Two (BOM:531509) GF Value Rank : 7 (As of May. 26, 2024)


View and export this data going back to 1996. Start your Free Trial

What is Step Two GF Value Rank?

Step Two has the GF Value Rank of 7.

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 Step Two's GF Value Rank

For the Credit Services subindustry, Step Two'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.


Step Two's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Step Two's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Step Two's GF Value Rank falls into.



Step Two GF Value Rank Related Terms

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


Step Two (BOM:531509) Business Description

Traded in Other Exchanges
N/A
Address
AVANI SIGNATURE, 91A/1, Park Street, Kolkata, WB, IND, 700 016
Step Two Corp Ltd is a registered non-banking finance company engaged in the business of providing finance. The Company is registered with Reserve Bank of India as a Non Banking Finance Co.(NBFC). The Company is primarily engaged in providing Business Loans, and is also engaged in Trading and Investment in Shares & Securities. The majority of the revenue is generated from Interest Income.

Step Two (BOM:531509) Headlines

No Headlines