Tata Chemicals (BOM:500770) GF Value Rank : 8 (As of Jun. 01, 2024)

View and export this data going back to 1991. Start your Free Trial

What is Tata Chemicals GF Value Rank?

Tata Chemicals 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 Tata Chemicals's GF Value Rank

For the Chemicals subindustry, Tata Chemicals'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.

Tata Chemicals's GF Value Rank Distribution in the Chemicals Industry

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

* The bar in red indicates where Tata Chemicals's GF Value Rank falls into.

Tata Chemicals GF Value Rank Related Terms

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

Tata Chemicals (BOM:500770) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Tata Chemicals Ltd (BOM:500770) » Definitions » GF Value Rank

Traded in Other Exchanges

TATACHEM:India

Address

24, Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400001

Website

https://www.tatachemicals.com

Tata Chemicals Ltd manufactures and sells a variety of chemicals and agricultural products. The firm organizes itself into three reportable segments - Inorganic Chemicals: Comprising soda ash, marine chemicals, caustic soda, cement, bulk chemicals and salt. Agri Inputs: Comprising traded seeds, pesticides, speciality crop nutrients and Others: Comprising pulses, spices, water purifiers and nutritional solutions. Maximum revenue is generated in India.

Tata Chemicals (BOM:500770) Headlines

No Headlines