Centum Electronics (BOM:517544) GF Value Rank : 3 (As of May. 04, 2024)

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What is Centum Electronics GF Value Rank?

Centum Electronics has the GF Value Rank of 3.

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 Centum Electronics's GF Value Rank

For the Electronic Components subindustry, Centum Electronics'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.

Centum Electronics's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Centum Electronics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Centum Electronics's GF Value Rank falls into.

Centum Electronics GF Value Rank Related Terms

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

Centum Electronics (BOM:517544) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

CENTUM:India

Address

No. 44 KHB Industrial area, Yelahanka New Town, Bangalore, KA, IND, 560106

Website

https://www.centumelectronics.com

Centum Electronics Ltd designs, manufactures, and also exports electronic products. It also provides design services to its customers these include systems, subsystems, and modules, and complex electronic components. It provides mission-critical services and solutions to customers engaged in the Defence, Aerospace, Space, Medical, Transportation, and Industrial segments. The company's only operating segment being Electronic System Design and Manufacturing. Its geographical segments include India; Europe and UK; North America; and the Rest of the world. India generates maximum revenue for the company.

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