Transmissora Alianca de Energia Eletrica (BSP:TAEE3) GF Value Rank : 7 (As of May. 01, 2024)

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What is Transmissora Alianca de Energia Eletrica GF Value Rank?

Transmissora Alianca de Energia Eletrica has the GF Value Rank of 7.

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 Transmissora Alianca de Energia Eletrica's GF Value Rank

For the Utilities - Regulated Electric subindustry, Transmissora Alianca de Energia Eletrica'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.

Transmissora Alianca de Energia Eletrica's GF Value Rank Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Transmissora Alianca de Energia Eletrica's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Transmissora Alianca de Energia Eletrica's GF Value Rank falls into.

Transmissora Alianca de Energia Eletrica GF Value Rank Related Terms

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

Transmissora Alianca de Energia Eletrica (BSP:TAEE3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Transmissora Alianca de Energia Eletrica SA (BSP:TAEE3) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TAEE4:Brazil TAEE11:Brazil

Address

Praca XV de Novembro, 20, Salas 601, e 602, 6th Floor, Centro, Rio de Janeiro, RJ, BRA, 20010-010

Website

https://www.taesa.com.br

Transmissora Alianca de Energia Eletrica SA, or Taesa, is an electric utility company that acts as one of the largest electric transmission concessionaires in Brazil. Taesa implements, operates, and maintains electric power transmission services and facilities both for Brazil's National Interconnected System and for the electricity transmission sectors of other countries as well. The company generates most of its revenue in the form of compensation for its investments in the construction of transmission lines and for the operation and maintenance service that it provides all over Brazil. Taesa's controlling shareholders include a large, state-owned Brazilian power company, CEMIG.

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