KAP AG (FRA:IUR) GF Value Rank : 4 (As of May. 11, 2024)

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What is KAP AG GF Value Rank?

KAP AG has the GF Value Rank of 4.

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 KAP AG's GF Value Rank

For the Conglomerates subindustry, KAP AG'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.

KAP AG's GF Value Rank Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, KAP AG's GF Value Rank distribution charts can be found below:

* The bar in red indicates where KAP AG's GF Value Rank falls into.

KAP AG GF Value Rank Related Terms

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KAP AG (FRA:IUR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » KAP AG (FRA:IUR) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

IUR:Germany

Address

Edelzeller Strasse 44, Fulda, HE, DEU, 36043

Website

https://www.kap.de

KAP AG is a German industrial holding company that provides engineered products and automotive components. The Flexible films segment generates maximum revenue, it is into extrusion coatings, calendaring and the conditioning of coated products. The engineered products segment includes develops, produces and sells technical fabrics and yarns whereas Surface technologies with chemical and physical conditioning specialized surface processes for refining metallic materials such as aluminum, magnesium, zinc die-casting or steel. Precision components segment manufacturers the precision components Geographically, the business presence of the firm is seen in the region of Germany, Rest of Europe, North/South America, Asia and in Other Countries.

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