GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Whirlpool of India Ltd (BOM:500238) » Definitions » GF Value Rank

Whirlpool of India (BOM:500238) GF Value Rank : 4 (As of May. 27, 2024)


View and export this data going back to 1992. Start your Free Trial

What is Whirlpool of India GF Value Rank?

Whirlpool of India has the GF Value Rank of 4.

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 Whirlpool of India's GF Value Rank

For the Furnishings, Fixtures & Appliances subindustry, Whirlpool of India'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.


Whirlpool of India's GF Value Rank Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Whirlpool of India's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Whirlpool of India's GF Value Rank falls into.



Whirlpool of India GF Value Rank Related Terms

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


Whirlpool of India (BOM:500238) Business Description

Traded in Other Exchanges
Address
Plot No. 40, Sector-44, Whirlpool House, Gurugram, HR, IND, 122 002
Whirlpool of India Ltd is an India-based company that is principally engaged in producing and selling major home appliances. Its products consist of refrigerators, washing machines, air conditioners, water purifiers, microwave ovens, small domestic appliances, built-in appliances, and others. The Company's operations predominantly comprise of only one segment i.e. Home Appliances. The company also offers services to customers. The company generates the majority of total revenue from the Indian domestic market, with the rest from overseas markets. The company is headquartered in Gurgaon.

Whirlpool of India (BOM:500238) Headlines

No Headlines