GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Ajinomoto Co Inc (OTCPK:AJINY) » Definitions » GF Value Rank

Ajinomoto Co (Ajinomoto Co) GF Value Rank : 3 (As of Apr. 27, 2024)


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

What is Ajinomoto Co GF Value Rank?

Ajinomoto Co 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 Ajinomoto Co's GF Value Rank

For the Packaged Foods subindustry, Ajinomoto Co'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.

Ajinomoto Co's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Ajinomoto Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Ajinomoto Co's GF Value Rank falls into.


Ajinomoto Co GF Value Rank Related Terms

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

Ajinomoto Co (Ajinomoto Co) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Ajinomoto Co Inc (OTCPK:AJINY) » Definitions » GF Value Rank
Comparable Companies
TSE:2801 TSE:2897 TSE:2875 TSE:2269 TSE:2212 TSE:2002 TSE:2871 TSE:2282 TSE:2229 TSE:2809 XSWX:NESN KHC XPAR:BN GIS SHSE:603288 NSE:NESTLEIND SHSE:600887 LSE:ABF SZSE:300999 BIMBOA
Traded in Other Exchanges
AJINF:USA 2802:Japan AJI:Germany
Address
15-1, Kyobashi 1-chome, Chuo-ku, Tokyo, JPN, 104-8315
Website
http://www.ajinomoto.co.jp
Ajinomoto is Japan's leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.