Saudi Aramco Base Oil Co - Luberef (SAU:2223) GF Value Rank : 0 (As of May. 24, 2024)

View and export this data going back to 2022. Start your Free Trial

What is Saudi Aramco Base Oil Co - Luberef GF Value Rank?

Saudi Aramco Base Oil Co - Luberef has the GF Value Rank of 0.

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.

Saudi Aramco Base Oil Co - Luberef GF Value Rank Related Terms

Thank you for viewing the detailed overview of Saudi Aramco Base Oil Co - Luberef's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Saudi Aramco Base Oil Co - Luberef (SAU:2223) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Saudi Aramco Base Oil Co - Luberef (SAU:2223) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Saudi Aramco Industrial Area, P.O. Box 5518, Jeddah, SAU, 21432

Website

https://www.luberef.com

Saudi Aramco Base Oil Co - Luberef is engaged in constructing, owning, and operating refineries of lubricating oils and to purchase, sell, transporting, marketing, importing, and exporting lubricating oils, additives, lubricating oil blending stocks, byproducts, and other related petroleum products. Geographically, the company operates in the Kingdom of Saudi Arabia, the United Arab Emirates, India, Egypt, Singapore, and Others.

Saudi Aramco Base Oil Co - Luberef (SAU:2223) Headlines

No Headlines