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Redwoods Acquisition (Redwoods Acquisition) GF Value Rank : 0 (As of Jun. 04, 2024)


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What is Redwoods Acquisition GF Value Rank?

Redwoods Acquisition 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.

Redwoods Acquisition GF Value Rank Related Terms

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Redwoods Acquisition (Redwoods Acquisition) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Redwoods Acquisition Corp (NAS:RWOD) » Definitions » GF Value Rank
Comparable Companies
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Traded in Other Exchanges
N/A
Address
1115 Broadway, 12th Floor, New York, NY, USA, 10010
Website
Redwoods Acquisition Corp is a is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.
Executives
Jiande Chen director, officer: Chief Executive Officer IMAX CORPORATION, A401-410 TOMORROW SQUA, SHANGHAI F4 200003
Raymond John Gibbs director 521 FIFTH AVENUE, 17TH FLOOR, NEW YORK NY 10175
Wang Cong Edward director, officer: Chief Financial Officer 521 FIFTH AVENUE, 17TH FLOOR, NEW YORK NY 10175
Redwoods Capital Llc 10 percent owner 1115 BROADWAY, 12TH FLOOR, NEW YORK NY 10010
Weikwang Ng director 1115 BROADWAY, 12TH FLOOR, NEW YORK NY 10010
Hong Jeff Li director 1115 BROADWAY, 12TH FLOOR, NEW YORK NM 10010