Alon Gas Energy Development (XTAE:ALGS) GF Value Rank : 1 (As of May. 25, 2024)

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What is Alon Gas Energy Development GF Value Rank?

Alon Gas Energy Development 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 Alon Gas Energy Development's GF Value Rank

For the Oil & Gas E&P subindustry, Alon Gas Energy Development'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.

Alon Gas Energy Development's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Alon Gas Energy Development's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Alon Gas Energy Development's GF Value Rank falls into.

Alon Gas Energy Development GF Value Rank Related Terms

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Alon Gas Energy Development (XTAE:ALGS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Alon Gas Energy Development Ltd (XTAE:ALGS) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Europark Yakum, Building France, Yakum, ISR, 60972

Website

http://www.alon.co.il

Alon Gas Energy Development Ltd formerly Alon Natural Gas Exploration Ltd is engaged in investment activities in the field of search, exploration of natural gas. It holds more than three percent of the Tamar gas field.