GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Nippon Steel Corp (OTCPK:NISTF) » Definitions » GF Value Rank

Nippon Steel (Nippon Steel) GF Value Rank : 5 (As of Apr. 30, 2024)


View and export this data going back to 2009. Start your Free Trial

What is Nippon Steel GF Value Rank?

Nippon Steel has the GF Value Rank of 5.

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 Nippon Steel's GF Value Rank

For the Steel subindustry, Nippon Steel'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.

Nippon Steel's GF Value Rank Distribution in the Steel Industry

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

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


Nippon Steel GF Value Rank Related Terms

Thank you for viewing the detailed overview of Nippon Steel's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Nippon Steel (Nippon Steel) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Nippon Steel Corp (OTCPK:NISTF) » Definitions » GF Value Rank
Comparable Companies
TSE:5411 TSE:5406 TSE:5444 TSE:5471 TSE:5463 TSE:5423 TSE:5481 NGO:7485 TSE:5451 TSE:5449 NUE XKRX:005490 BOM:500228 XAMS:MT NSE:TATASTEEL STLD SHSE:600019 RS TPE:2002 MIC:CHMF
Traded in Other Exchanges
NPSCY:USA 5401:Japan NPS:Germany
Address
6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo, JPN, 100-8071
Website
https://www.nipponsteel.com
Nippon Steel Corporation, or NS, is the largest steel producer in Japan and one of the top five producers globally. NS supplies steel products such as steel sheets, steel plates, pipes, tubes, bars, wire rods, and stainless steels. It is mainly exposed to the auto, construction, and energy sectors. Steelmaking accounts for around 85%-90% of its revenue, while the remainder stems from engineering and construction, chemicals, new materials, and system solutions. Around 35%-40% of its revenue is from exports.