Samvardhana Motherson International (BOM:517334) GF Value Rank : 6 (As of Jun. 19, 2024)

View and export this data going back to 1993. Start your Free Trial

What is Samvardhana Motherson International GF Value Rank?

Samvardhana Motherson International has the GF Value Rank of 6.

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 Samvardhana Motherson International's GF Value Rank

For the Auto Parts subindustry, Samvardhana Motherson International'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.

Samvardhana Motherson International's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Samvardhana Motherson International's GF Value Rank falls into.

Samvardhana Motherson International GF Value Rank Related Terms

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

Samvardhana Motherson International (BOM:517334) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Samvardhana Motherson International Ltd (BOM:517334) » Definitions » GF Value Rank

Traded in Other Exchanges

MOTHERSON:India

Address

Noida-Greater Noida Expressway, 11th Floor, Plot No. 1, Sector-127, Noida, UP, IND, 201301

Website

https://www.motherson.com

Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and waste recycling systems. The Company has Four reportable segments such as Wiring Harness, Modules and polymer products, Vision systems and Emerging businesses. The Company makes majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.

Samvardhana Motherson International (BOM:517334) Headlines

No Headlines