Jaiprakash Power Ventures (BOM:532627) GF Value Rank : 3 (As of May. 14, 2024)

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What is Jaiprakash Power Ventures GF Value Rank?

Jaiprakash Power Ventures has the GF Value Rank of 3.

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 Jaiprakash Power Ventures's GF Value Rank

For the Utilities - Independent Power Producers subindustry, Jaiprakash Power Ventures'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.

Jaiprakash Power Ventures's GF Value Rank Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Jaiprakash Power Ventures's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Jaiprakash Power Ventures's GF Value Rank falls into.

Jaiprakash Power Ventures GF Value Rank Related Terms

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Jaiprakash Power Ventures (BOM:532627) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Jaiprakash Power Ventures Ltd (BOM:532627) » Definitions » GF Value Rank

Traded in Other Exchanges

JPPOWER:India

Address

63, Basant Lok, JA House, Vasant Vihar, New Delhi, IND, 110 057

Website

https://www.jppowerventures.com

Jaiprakash Power Ventures Ltd is an Indian power company. The firm plan, develop, implement and operate power projects in India. In addition, it operates the largest hydroelectric power plant in the private sector in India. The company is also engaged in the business of cement grinding and captive coal mining operations. Its segments include Power & Transmission, Sand Mining, Coal, and Others. It generates a majority of its revenue from the Power and transmission segment. Geographically the company generates its revenue from India.

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