SoftTech Engineers (NSE:SOFTTECH) GF Value Rank : 3 (As of May. 27, 2024)

View and export this data going back to 2018. Start your Free Trial

What is SoftTech Engineers GF Value Rank?

SoftTech Engineers 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 SoftTech Engineers's GF Value Rank

For the Software - Application subindustry, SoftTech Engineers'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.

SoftTech Engineers's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, SoftTech Engineers's GF Value Rank distribution charts can be found below:

* The bar in red indicates where SoftTech Engineers's GF Value Rank falls into.

SoftTech Engineers GF Value Rank Related Terms

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

SoftTech Engineers (NSE:SOFTTECH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » SoftTech Engineers Ltd (NSE:SOFTTECH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

543470:India

Address

Baner Road, SoftTech Towers, S NO 1/1A/7 8 15 16 17 Plot No. B,C,D, 1-Baner, Opposite Royal Enfield Showroom, Pune, MH, IND, 411045

Website

https://www.softtech-engr.com

SoftTech Engineers Ltd is a software product company. The company develops software and intellectual property in the architecture, engineering, and construction (AEC) domains. Its product includes AutoDCR; PWIMS; Opticon; BIMDCR; and RuleBuddy. The company serves large infrastructure; real estate; government organizations and consultants companies. Geographically, it operates only in India.

SoftTech Engineers (NSE:SOFTTECH) Headlines

No Headlines