Industrivarden AB (OSTO:INDU A) GF Value Rank : 6 (As of May. 20, 2024)

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What is Industrivarden AB GF Value Rank?

Industrivarden AB has the GF Value Rank of 6.

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 Industrivarden AB's GF Value Rank

For the Asset Management subindustry, Industrivarden AB'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.

Industrivarden AB's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Industrivarden AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Industrivarden AB's GF Value Rank falls into.

Industrivarden AB GF Value Rank Related Terms

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Industrivarden AB (OSTO:INDU A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Industrivarden AB (OSTO:INDU A) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

INDU C:Sweden INDUCs:UK INDUAs:UK 0MHU:UK 0H13:UK IDVA:Germany

Address

Storgatan 10, Stockholm, SWE, 114 51

Website

https://www.industrivarden.net

Industrivarden AB is an asset management firm with a long-term, activist orientation. The company's stated investment goal is to increase net asset value and generate returns in excess of the market cost of capital. Industrivarden makes investments in Nordic companies it can influence through corporate governance actions. It benchmarks its performance relative to the average return of the Stockholm Stock Exchange. The firm counts many public and private pension managers, foundations, and retail investors as its client base. Its security selection criteria emphasize enduring business models with promising growth prospects at an attractive valuation.

Industrivarden AB (OSTO:INDU A) Headlines

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