BlackRock Energy and Resourcesome Trust (LSE:BERI) GF Value Rank : 2 (As of May. 31, 2024)

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What is BlackRock Energy and Resourcesome Trust GF Value Rank?

BlackRock Energy and Resourcesome Trust has the GF Value Rank of 2.

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 BlackRock Energy and Resourcesome Trust's GF Value Rank

For the Asset Management subindustry, BlackRock Energy and Resourcesome Trust'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.

BlackRock Energy and Resourcesome Trust's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BlackRock Energy and Resourcesome Trust's GF Value Rank distribution charts can be found below:

* The bar in red indicates where BlackRock Energy and Resourcesome Trust's GF Value Rank falls into.

BlackRock Energy and Resourcesome Trust GF Value Rank Related Terms

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BlackRock Energy and Resourcesome Trust (LSE:BERI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » BlackRock Energy and Resources Income Trust PLC (LSE:BERI) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BERIl:UK

Address

12 Throgmorton Avenue, London, GBR, EC2N 2DL

Website

https://www.blackrock.com

BlackRock Energy and Resources Income Trust PLC is a UK-based investment trust company. The company's objectives are to achieve an annual dividend target and, over the long term, capital growth by investing in securities of companies operating in the mining and energy sectors. It seeks to achieve its objectives through a focused portfolio consisting of approximately thirty to one hundred and fifty securities. The company operates a flexible gearing policy that depends on prevailing market conditions.