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Labrador Iron Mines Holdings (Labrador Iron Mines Holdings) GF Value Rank : 0 (As of Jun. 06, 2024)


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What is Labrador Iron Mines Holdings GF Value Rank?

Labrador Iron Mines Holdings has the GF Value Rank of 0.

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.

Labrador Iron Mines Holdings GF Value Rank Related Terms

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Labrador Iron Mines Holdings (Labrador Iron Mines Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Labrador Iron Mines Holdings Ltd (OTCPK:LBRMF) » Definitions » GF Value Rank
Comparable Companies
SVBL LTUM WOLV BLTH COBA NWIFF ENRT GRDV ATAO NRHI ASX:BHP ASX:RIO LSE:RIO LSE:GLEN ASX:FMG BSP:VALE3 SAU:1211 GMEXICOB LSE:AAL BOM:500188
Traded in Other Exchanges
N/A
Address
55 University Avenue, Suite 1805, Toronto, ON, CAN, M5J 2H7
Website
http://www.labradorironmines.ca
Labrador Iron Mines Holdings Ltd is a mineral resource company. The company through its subsidiaries is engaged in the business of mining iron ore and the exploration and development of direct shipping iron ore. Its projects include James, Redmond, Knob Lake, Houston and Malcolm, Sawyer Lake, Astray Lake and Kivivic Number 1 and 2.

Labrador Iron Mines Holdings (Labrador Iron Mines Holdings) Headlines