Walchandnagar Industries (BOM:507410) GF Value Rank : 1 (As of May. 22, 2024)

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

What is Walchandnagar Industries GF Value Rank?

Walchandnagar Industries has the GF Value Rank of 1.

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 Walchandnagar Industries's GF Value Rank

For the Engineering & Construction subindustry, Walchandnagar Industries'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.

Walchandnagar Industries's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Walchandnagar Industries's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Walchandnagar Industries's GF Value Rank falls into.

Walchandnagar Industries GF Value Rank Related Terms

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

Walchandnagar Industries (BOM:507410) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Walchandnagar Industries Ltd (BOM:507410) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

WALCHANNAG:India

Address

S. No.12/3-B, G. A. Kulkarni Path, Building No. 1, 9th Floor, Siddharth Towers, Kothrud, Pune, MH, IND, 411 038

Website

https://www.walchand.com

Walchandnagar Industries Ltd is an India-based company, that engages in manufacturing engineering products. It provides its services in the fields of Nuclear Power, Aerospace, Missile, Defence, Oil and Gas, Steam generation plants, Independent power projects, Turnkey Cement plants, Mineral Processing, Bulk Material handling, and Turnkey Sugar plants. It operates through the following segments: Heavy Engineering, Foundry and Machine Shop, and Others. The firm generates maximum revenue from the Heavy Engineering segment.

Walchandnagar Industries (BOM:507410) Headlines

No Headlines