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Air Water (Air Water) GF Value Rank : 6 (As of Apr. 29, 2024)


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What is Air Water GF Value Rank?

Air Water has the GF Value Rank of 6.

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 Air Water's GF Value Rank

For the Specialty Chemicals subindustry, Air Water'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.


Air Water's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Air Water's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Air Water's GF Value Rank falls into.



Air Water GF Value Rank Related Terms

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


Air Water (Air Water) Business Description

Traded in Other Exchanges
Address
12-8, Minami Semba 2-chome, Chuo-ku, Osaka, JPN, 542-0081
Air Water Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into five primary segments based on product type. The industrial gas segment, which generates the most revenue of any segment, sells gases including oxygen used in blast furnaces to produce steel. The chemical business sells coal and fine chemicals to the agricultural and pharmaceutical industries. The medical segment sells medical gases and sterilization equipment to hospitals and home-care facilities. The agricultural and food products segment sells delicatessen meat, frozen foods, and fruit and vegetable juices. The energy segment sells natural gas.

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