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Empresa Distribuidora y Comercializadora Norte (BUE:EDN) GF Value Rank : 1 (As of May. 23, 2024)


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What is Empresa Distribuidora y Comercializadora Norte GF Value Rank?

Empresa Distribuidora y Comercializadora Norte 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 Empresa Distribuidora y Comercializadora Norte's GF Value Rank

For the Utilities - Regulated Electric subindustry, Empresa Distribuidora y Comercializadora Norte'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.

Empresa Distribuidora y Comercializadora Norte's GF Value Rank Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empresa Distribuidora y Comercializadora Norte's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Empresa Distribuidora y Comercializadora Norte's GF Value Rank falls into.


Empresa Distribuidora y Comercializadora Norte GF Value Rank Related Terms

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

Empresa Distribuidora y Comercializadora Norte (BUE:EDN) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Empresa Distribuidora y Comercializadora Norte SA (BUE:EDN) » Definitions » GF Value Rank
Comparable Companies
BUE:TRAN BUE:CECO2 BUE:EDSH BUE:CEPU NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG BOM:532898 ED XEL EIX WEC SHSE:601985
Traded in Other Exchanges
EDN:USA PWD1:Germany
Address
6363 Del Libertador Avenue, Buenos Aires, ARG, C1428ARG
Website
https://www.edenor.com
Empresa Distribuidora y Comercializadora Norte SA is an Investment company and provider of services related to the distribution of electricity, renewable energies, and the development of sustainable technology. The firm's concession area covers the northern portion of the city of Buenos Aires mainly to residential, commercial, industrial, and public service.