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Honda Atlas Cars Pakistan (KAR:HCAR) GF Value Rank : 1 (As of May. 27, 2024)


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What is Honda Atlas Cars Pakistan GF Value Rank?

Honda Atlas Cars Pakistan 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 Honda Atlas Cars Pakistan's GF Value Rank

For the Auto Manufacturers subindustry, Honda Atlas Cars Pakistan'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.

Honda Atlas Cars Pakistan's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Atlas Cars Pakistan's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Honda Atlas Cars Pakistan's GF Value Rank falls into.


Honda Atlas Cars Pakistan GF Value Rank Related Terms

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Honda Atlas Cars Pakistan (KAR:HCAR) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Honda Atlas Cars Pakistan Ltd (KAR:HCAR) » Definitions » GF Value Rank
Comparable Companies
KAR:PSMC KAR:ATLH KAR:GHNI KAR:INDU TSLA TSE:7203 SZSE:002594 XTER:MBG XTER:BMW STLA XTER:VOW3 MIL:RACE TSE:7267 F NSE:MARUTI GM LI XKRX:005380 HKSE:02333 NSE:TATAMOTORS
Traded in Other Exchanges
N/A
Address
1-Mcleod Road, Lahore, PB, PAK
Website
https://www.honda.com.pk
Honda Atlas Cars Pakistan Ltd is engaged in assembling and progressive manufacturing and sale of Honda vehicles and spare parts. Its Segments include the Manufacturing and Trading segment. Manufacturing segment relates to the sale of locally manufactured cars and parts and Trading segment relates to the trading of completely built units (CBUs) and parts. It offers car models, such as Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V, and Honda City in various colors with advance technology features. Honda derives the majority of revenue through the Manufacturing segment.