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Driver Group (LSE:DRV) GF Value Rank : 0 (As of Jun. 08, 2024)


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What is Driver Group GF Value Rank?

Driver Group 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.

Driver Group GF Value Rank Related Terms

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Driver Group (LSE:DRV) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Driver Group PLC (LSE:DRV) » Definitions » GF Value Rank
Comparable Companies
LSE:HSS LSE:ASY LSE:VP. LSE:ZIG LSE:ANX LSE:AA4 LSE:DNA2 LSE:DNA3 LSE:EXPN VRSK EFX BAH XSWX:SGSN TRU XPAR:BVI FCN ASX:ALQ XSWX:DKSH TSE:6532 XPAR:IPS
Traded in Other Exchanges
N/A
Address
125 Old Broad Street, Suite 706-708, Floor 7, London, GBR, EC2N 1AR
Website
https://www.driver-group.com
Driver Group PLC provides consultancy services to the engineering and construction industries. The business activity of the group is primarily operated through divisions such as Europe and the Americas; Asia Pacific; Middle East. Geographically, it derives a majority of its revenue from the United Kingdom and can be seen across the region of Oman, France, Qatar, Germany, Kuwait, China, the US, Canada, and others. It offers quantity surveying, quantum and planning experts, litigation support, contract administration, and commercial advice/management services; and capital investment consultancy services, including development, project, and contracting management services.

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