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ESAB (ESAB) GF Value Rank : 0 (As of May. 24, 2024)


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What is ESAB GF Value Rank?

ESAB 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.


ESAB GF Value Rank Related Terms

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ESAB (ESAB) Business Description

Traded in Other Exchanges
Address
909 Rose Avenue, 8th Floor, North Bethesda, MD, USA, 20852
ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW's Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.6 billion in revenue and $329 million in GAAP operating income in 2022.
Executives
Olivier Biebuyck officer: President, EMEA 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852
Shyam Kambeyanda officer: President and CEO 2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Michele Campion officer: Chief Human Resources Officer 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852
Rhonda L Jordan director KRAFT FOODS INC, THREE LAKES DRIVE, NORTHFIELD IL 60093
Kevin J Johnson officer: Chief Financial Officer 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852
Christopher M Hix director 2160 SATELLITE BLVD., SUITE 200, DULUTH GA 30097
Patrick W Allender director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
Rajiv Vinnakota director 8730 STONY POINT PARKWAY, SUITE 150, RICHMOND VA 23235
John P Dion officer: SVP, ESAB Business Excellence 909 ROSE AVE., 8TH FLOOR, NORTH BETHESDA MD 20852
Eleanor Lukens officer: President, Americas 909 ROSE AVE., 8TH FLOOR, NORTH BETHESDA MD 20852
Mitchell P Rales director 11790 GLEN ROAD, POTOMAC MD 20854
Curtis E Jewell officer: SVP, General Counsel 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852
Melissa Cummings director 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852
Stephanie M Phillipps director C/O THE PNC FINANCIAL SERVICES GROUP, 340 MADISON AVENUE, NEW YORK NY 10173
Didier P Teirlinck director INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645

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