GF Value

James Taylor Jan 15, 2023

I am trying to find more information about the GF Value metric. In particular,

  • What are the metrics being used?
  • What assumptions are being used for the projections?
  • Do the projections take into account; analysts' forecasts, economists' forecasts
  • Current geopolitical events.

Can anyone help? I have searched the site and found nothing so far

Praveen Chawla Jan 18, 2023

If you click on the GF Value url on the summary page - you will find the following explanation.

The GF Value Line on our summary page gives an overview of the fair value that the stock should be traded at. It is calculated based on three factors:

  1. Historical multiples (PE Ratio, PS Ratio, PB Ratio and Price-to-Free-Cash-Flow) that the stock has traded at.
  2. GuruFocus adjustment factor based on the company’s past returns and growth.
  3. Future estimates of the business performance.

We believe the GF Value Line is the fair value that the stock should be traded at. The stock price will most likely fluctuate around the GF Value Line. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher.