GMO Globalsign Holdings KK (TSE:3788) GF Value Rank : 2 (As of Jun. 03, 2024)

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What is GMO Globalsign Holdings KK GF Value Rank?

GMO Globalsign Holdings KK 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 GMO Globalsign Holdings KK's GF Value Rank

For the Information Technology Services subindustry, GMO Globalsign Holdings KK'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.

GMO Globalsign Holdings KK's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, GMO Globalsign Holdings KK's GF Value Rank distribution charts can be found below:

* The bar in red indicates where GMO Globalsign Holdings KK's GF Value Rank falls into.

GMO Globalsign Holdings KK GF Value Rank Related Terms

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GMO Globalsign Holdings KK (TSE:3788) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » GMO Globalsign Holdings KK (TSE:3788) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

26-1, Sakuragaoka-cho, 10th Floor Cerulean Tower, Shibuya-ku, Tokyo, JPN, 150-8512

Website

https://www.gmogshd.com

GMO Globalsign Holdings KK is engaged in the development and operation of various internet solutions centred on cloud and hosting services and security services. It is organized into four business areas - IoT business, Cloud/Hosting business, Security/ID Management business, and Solutions business. The company offers a wide range of hosting services from rental server to cloud, direct sales and sales through distributors. In the ID management business, the company provides a cloud type ID service that realizes user ID management, access control, and single sign-on.

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