Automotive Axles (BOM:505010) GF Value Rank : 4 (As of May. 14, 2024)

View and export this data going back to 2000. Start your Free Trial

What is Automotive Axles GF Value Rank?

Automotive Axles has the GF Value Rank of 4.

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 Automotive Axles's GF Value Rank

For the Auto Parts subindustry, Automotive Axles'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.

Automotive Axles's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Automotive Axles's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Automotive Axles's GF Value Rank falls into.

Automotive Axles GF Value Rank Related Terms

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

Automotive Axles (BOM:505010) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Automotive Axles Ltd (BOM:505010) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AUTOAXLES:India

Address

Off Hunsur Road, Hootagalli Indsutrial Area, Mysore, KA, IND, 570 018

Website

https://www.autoaxle.com

Automotive Axles Ltd is an India-based company engaged in the manufacturing and sale of automotive components. The company manufactures rear drive axle assemblies in India. It manufactures Drive axles, Non-drive axles, Front steer axles, Specialty and defense axles, and Drum and disc brakes. These products are provided to the domestic and global manufacturers of trucks and buses pertaining to segments such as light, medium, and heavy commercial vehicles, military and off-highway vehicles, aftermarket, and exports. The company operates in India.

Automotive Axles (BOM:505010) Headlines

No Headlines