Universal Arts (BOM:532378) GF Value Rank : 10 (As of Jun. 07, 2024)

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What is Universal Arts GF Value Rank?

Universal Arts 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 Universal Arts's GF Value Rank

For the Entertainment subindustry, Universal Arts'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.

Universal Arts's GF Value Rank Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universal Arts's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Universal Arts's GF Value Rank falls into.

Universal Arts GF Value Rank Related Terms

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Universal Arts (BOM:532378) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Arts Ltd (BOM:532378) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

M. G. Road, Plot No. 45, Ganpati Bhavan, 1st Floor, Goregaon (West), Mumbai, MH, IND, 400062

Website

http://www.universal-arts.in

Universal Arts Ltd is engaged in the Entertainment Industry. It is engaged in the business of media such as TV serials, feature film production, trading in film rights, and television software. It has its EDIT V6 real-time non-linear editing systems. The EDIT system is being used by the company for editing serials of other production houses as well as its own. The company also offers movies to Doordarshan for a one-time single telecast.

Universal Arts (BOM:532378) Headlines

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