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Fauji Fertilizer Bin Qasim (KAR:FFBL) GF Value Rank : 5 (As of Jun. 01, 2024)


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What is Fauji Fertilizer Bin Qasim GF Value Rank?

Fauji Fertilizer Bin Qasim 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 Fauji Fertilizer Bin Qasim's GF Value Rank

For the Agricultural Inputs subindustry, Fauji Fertilizer Bin Qasim'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.


Fauji Fertilizer Bin Qasim's GF Value Rank Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Fauji Fertilizer Bin Qasim's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Fauji Fertilizer Bin Qasim's GF Value Rank falls into.



Fauji Fertilizer Bin Qasim GF Value Rank Related Terms

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


Fauji Fertilizer Bin Qasim (KAR:FFBL) Business Description

Traded in Other Exchanges
N/A
Address
Phase II, DHA, Jinnah Boulevard, FFBL Tower, C1/C2, Sector B, Islamabad, PAK
Fauji Fertilizer Bin Qasim Ltd manufactures granular urea and di-ammonium phosphate (DAP) fertilizers. It is mainly involved in the manufacturing and distribution of chemical fertilizers for the farmers and agriculture sector of Pakistan. It operates in four segments, Fertilizers, Power, Meat and Food. Through its operating segments, the firm manufactures, purchases and markets fertilizers, generates and supplies electricity, unit for halal slaughtering of animals to obtain meat for local and export sale, and produce multi-brand dairy products. The Fertilizers segment accounts for the majority of revenue. The company Geographically operates in pakistan.

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