Tata Steel (Tata Steel) GF Value Rank : 7 (As of May. 01, 2024)

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What is Tata Steel GF Value Rank?

Tata Steel 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 Tata Steel's GF Value Rank

For the Steel subindustry, Tata 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.

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

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

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

Tata Steel GF Value Rank Related Terms

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Tata Steel (Tata Steel) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tata Steel Ltd (OTCPK:TATLY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TATASTEEL:India 500470:India TTSTl:UK TTST:UK HWHG:Germany

Address

24 Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400 001

Website

https://www.tatasteel.com

Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strip. Its segments include Tata Steel India, Tata Steel Long Products, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and the Rest of the world.

Tata Steel (Tata Steel) Headlines

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