VA Tech Wabag (BOM:533269) GF Value Rank : 1 (As of Dec. 11, 2024)

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What is VA Tech Wabag GF Value Rank?

VA Tech Wabag has the GF Value Rank of 1.

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 VA Tech Wabag's GF Value Rank

For the Engineering & Construction subindustry, VA Tech Wabag'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.

VA Tech Wabag's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, VA Tech Wabag's GF Value Rank distribution charts can be found below:

* The bar in red indicates where VA Tech Wabag's GF Value Rank falls into.

VA Tech Wabag GF Value Rank Related Terms

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VA Tech Wabag Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » VA Tech Wabag Ltd (BOM:533269) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

WABAG:India

Address

200 Feet Thoraipakkam - Pallavaram Main Road, Wabag House, No. 17, Sunnambu Kolathur, Chennai, TN, IND, 600117

Website

https://www.wabag.com

VA Tech Wabag Ltd provides engineering solutions in the water treatment industry. The group is engaged in the construction and maintenance of water treatment plants. The company design completes and operates drinking water and wastewater plants for both the municipal and industrial sectors. The company offers sustained solutions for special customer needs through a comprehensive range of services and technologies. The company provides lifecycle solutions, including conceptualization, design, engineering, procurement, supply, installation, construction, and operations and maintenance services. It has two geographical operating segments which are India and Rest of world, where it makes majority of the revenue from India.

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