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Odakyu Electric Railway Co (TSE:9007) GF Value Rank : 8 (As of Apr. 29, 2024)


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What is Odakyu Electric Railway Co GF Value Rank?

Odakyu Electric Railway Co has the GF Value Rank of 8.

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 Odakyu Electric Railway Co's GF Value Rank

For the Railroads subindustry, Odakyu Electric Railway 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.


Odakyu Electric Railway Co's GF Value Rank Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Odakyu Electric Railway Co's GF Value Rank distribution charts can be found below:

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



Odakyu Electric Railway Co GF Value Rank Related Terms

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Odakyu Electric Railway Co (TSE:9007) Business Description

Traded in Other Exchanges
Address
1-8-3 Nishishinjuku Shinjuku-ku, Tokyo, JPN, 160-8309
Odakyu Electric Railway Co Ltd is a Japanese company which provides transportation services. The company has three reportable segments namely Transportation, Merchandising and Real Estate. The Transportation segment provides services through railway, bus, taxi, sightseeing boat, and ropeway. Merchandising segment operates departmental stores and supermarket. Real Estate segment is engaged in the sale of land and buildings, leasing of buildings and others. The company also offers services including hotel, restaurant, travel agent, golf course, railway maintenance service, building management and maintenance, advertising agency, horticulture and gardening, bookkeeping service, insurance agency, nursing and child care. The majority of the company's revenue comes from transportation business.

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