Nitto Denko (Nitto Denko) GF Value Rank : 1 (As of Apr. 28, 2024)

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What is Nitto Denko GF Value Rank?

Nitto Denko 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 Nitto Denko's GF Value Rank

For the Specialty Chemicals subindustry, Nitto Denko'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.

Nitto Denko's GF Value Rank Distribution in the Chemicals Industry

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

* The bar in red indicates where Nitto Denko's GF Value Rank falls into.

Nitto Denko GF Value Rank Related Terms

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Nitto Denko (Nitto Denko) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Nitto Denko Corp (OTCPK:NDEKY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

NDEKF:USA 6988:Japan ND5:Germany

Address

4-20, Ofuka-Cho, 33rd Floor, Grand Front Osaka, Kita-Ku, Osaka, JPN, 530-0011

Website

http://www.nitto.com

Nitto Denko Corp manufactures and sells a variety of industrial and electronics products. The company sells tape products, which include masking tape for painting and printed-circuit boards, double sided tapes, electrical tape, and sealant materials used in the construction industry. Nitto Denko also sells film products, which include surface protective film, fluoroplastic films used to seal pipes and air filters, and porous film that allows air to pass through but seals water and other liquids. The firm also produces electronics, which include flexible printed circuit boards for smartphones and tablets, and medical products such as drug delivery patches and adhesive sheets.

Nitto Denko (Nitto Denko) Headlines

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