Tokyo Steel Manufacturing Co (TSE:5423) GF Value Rank : 10 (As of May. 21, 2024)

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What is Tokyo Steel Manufacturing Co GF Value Rank?

Tokyo Steel Manufacturing Co has the GF Value Rank of 10.

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 Tokyo Steel Manufacturing Co's GF Value Rank

For the Steel subindustry, Tokyo Steel Manufacturing Co'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.

Tokyo Steel Manufacturing Co's GF Value Rank Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Tokyo Steel Manufacturing Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Tokyo Steel Manufacturing Co's GF Value Rank falls into.

Tokyo Steel Manufacturing Co GF Value Rank Related Terms

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Tokyo Steel Manufacturing Co (TSE:5423) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tokyo Steel Manufacturing Co Ltd (TSE:5423) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kasumigaseki-Tokyu Bldg 15th Floor,, 3-7-1, Kasumigaseki, Chiyoda-ku, Tokyo, JPN, 1000013

Website

http://www.tokyosteel.co.jp

Tokyo Steel Manufacturing Co Ltd is a Japan-based company primarily engaged in production of long steel products and flat steel products. The company's long product portfolio comprises H beams, sheet piles, I-beams, checkered H-beams, channels, and reinforcing bars. The company's flat product portfolio consists of heavy plates, hot-rolled coils, pickled and oiled coils, hot-dip galvanized coils, checkered coils, and steel sheets. These products are used in broad range of applications, including construction, civil engineering, industrial equipment, plant equipment, bridge, and shipbuilding. The company has four plants located in Tahara, Okayama, Kyushu, and Utsunomiya. Tokyo Steel Manufacturing generates most of its revenue from the Japanese domestic market.

Tokyo Steel Manufacturing Co (TSE:5423) Headlines

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