MRV Engenharia e Participacoes (BSP:MRVE3) GF Value Rank : 8 (As of May. 21, 2024)

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What is MRV Engenharia e Participacoes GF Value Rank?

MRV Engenharia e Participacoes has the GF Value Rank of 8.

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 MRV Engenharia e Participacoes's GF Value Rank

For the Residential Construction subindustry, MRV Engenharia e Participacoes'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.

MRV Engenharia e Participacoes's GF Value Rank Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, MRV Engenharia e Participacoes's GF Value Rank distribution charts can be found below:

* The bar in red indicates where MRV Engenharia e Participacoes's GF Value Rank falls into.

MRV Engenharia e Participacoes GF Value Rank Related Terms

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

MRV Engenharia e Participacoes (BSP:MRVE3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » MRV Engenharia e Participacoes SA (BSP:MRVE3) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Professor Mario Werneck Avenida, 621, Estoril, 1st Floor, Belo Horizonte, MG, BRA, 30455-610

Website

https://www.mrv.com.br

MRV Engenharia e Participacoes SA is engaged in the management of own and third-party assets, development, construction and sale of Company-owned or third-party real estate, the provision of technical engineering services related to the functions of the technicians in charge, real estate consultancy services, dealing service of goods and services supply in residential real estate segment and holding equity interests in other companies as a shareholder. Real estate development and the construction of real estate are performed directly by the Company or other business partners. The operating segments of the company are Real estate development, Rental of residential properties and Urban land subdivisions. The rental of residential properties segment is split in United States (USA) and Brazil.

MRV Engenharia e Participacoes (BSP:MRVE3) Headlines

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