Action Construction Equipment (BOM:532762) GF Value Rank : 3 (As of May. 24, 2024)

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What is Action Construction Equipment GF Value Rank?

Action Construction Equipment 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 Action Construction Equipment's GF Value Rank

For the Farm & Heavy Construction Machinery subindustry, Action Construction Equipment'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.

Action Construction Equipment's GF Value Rank Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Action Construction Equipment's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Action Construction Equipment's GF Value Rank falls into.

Action Construction Equipment GF Value Rank Related Terms

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Action Construction Equipment (BOM:532762) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Action Construction Equipment Ltd (BOM:532762) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ACE:India

Address

Dudhola Link Road, Dudhala District, Palwal, HR, IND, 121102

Website

https://www.ace-cranes.com

Action Construction Equipment Ltd is engaged in manufacturing material handling and construction equipment. The company operates in four business segments that are Cranes, Construction Equipment, Material Handling, and Agri Equipment. The product portfolio of the company consists of the mobile crane, tower crane, crawler crane, backhoe and ladder, road equipment, and the forklift truck. Most of the firm's revenue gets derived from the Cranes segment.

Action Construction Equipment (BOM:532762) Headlines

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