Avon Protection (LSE:AVON) GF Value Rank : 7 (As of May. 11, 2024)

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What is Avon Protection GF Value Rank?

Avon Protection has the GF Value Rank of 7.

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 Avon Protection's GF Value Rank

For the Aerospace & Defense subindustry, Avon Protection'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.

Avon Protection's GF Value Rank Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Avon Protection's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Avon Protection's GF Value Rank falls into.

Avon Protection GF Value Rank Related Terms

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Avon Protection (LSE:AVON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Avon Protection PLC (LSE:AVON) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AVNBF:USA AVONl:UK AVON.GB:UK 1OK:Germany

Address

Semington Road, Hampton Park West, Melksham, Wiltshire, GBR, SN12 6NB

Website

https://www.avon-protection-plc.com

Avon Protection PLC is engaged in providing technology that designs and produces life-critical personal protection systems to maximize the performance and capabilities of its customers. The company's portfolio of life-critical protection solutions includes full-face respirators, ballistic helmets, escape hoods, SCBA systems, modular PAPR units, thermal imaging cameras, and underwater equipment for the world's militaries and first responders. The company has two operating and reportable segments, these being Respiratory Protection; which is the key revenue generating segment and the Head Protection. Geographically, the revenue is generated from United States which is the key revenue generating market and Europe.

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