Packaging of America (BSP:P1KG34) GF Value Rank : 3 (As of May. 15, 2024)

View and export this data going back to 2020. Start your Free Trial

What is Packaging of America GF Value Rank?

Packaging of America has the GF Value Rank of 3.

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 Packaging of America's GF Value Rank

For the Packaging & Containers subindustry, Packaging of America'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.

Packaging of America's GF Value Rank Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Packaging of America's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Packaging of America's GF Value Rank falls into.

Packaging of America GF Value Rank Related Terms

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

Packaging of America (BSP:P1KG34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Packaging Corp of America (BSP:P1KG34) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

PKG:USA PKA:Germany

Address

1 North Field Court, Lake Forest, IL, USA, 60045

Website

https://www.packagingcorp.com

Packaging Corp of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 4 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. The firm differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.

Packaging of America (BSP:P1KG34) Headlines

No Headlines