Gefran SpA (MIL:GE) GF Value Rank : 7 (As of Jun. 07, 2024)

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What is Gefran SpA GF Value Rank?

Gefran SpA 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 Gefran SpA's GF Value Rank

For the Electronic Components subindustry, Gefran SpA'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.

Gefran SpA's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Gefran SpA's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Gefran SpA's GF Value Rank falls into.

Gefran SpA GF Value Rank Related Terms

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Gefran SpA (MIL:GE) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

GF7:Germany

Address

Via Sebina, 74, Provaglio d'Iseo, Brescia, ITA, 25050

Website

https://www.gefran.com

Gefran SpA operates in two business divisions including industrial sensors, and automation components. The sensors business offers a complete for measuring four physical parameters of position, pressure, force, and temperature. The electronic automation components business is divided into three product lines: instrumentation, power controllers, and automation platforms. The drives business develops products and solutions to regulate speed and control alternating current (AC), direct current (DC), and brushless electric motors. It generates the majority of the revenue from sensors. It has a geographical presence in Italy, the European Union, North America, South America, and the Rest of the World.