Bharat Heavy Electricals (Bharat Heavy Electricals) GF Value Rank : 3 (As of Jun. 25, 2024)

View and export this data going back to 2014. Start your Free Trial

What is Bharat Heavy Electricals GF Value Rank?

Bharat Heavy Electricals 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 Bharat Heavy Electricals's GF Value Rank

For the Specialty Industrial Machinery subindustry, Bharat Heavy Electricals'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.

Bharat Heavy Electricals's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Bharat Heavy Electricals's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Bharat Heavy Electricals's GF Value Rank falls into.

Bharat Heavy Electricals GF Value Rank Related Terms

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

Bharat Heavy Electricals (Bharat Heavy Electricals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Bharat Heavy Electricals Ltd (GREY:BRHTY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BHEL:India 500103:India

Address

BHEL House, Siri Fort, New Delhi, IND, 110 049

Website

https://www.bhel.com

Bharat Heavy Electricals Ltd is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India. Its products and services serve power, transportation, energy, oil and gas, defence, and other industrial markets. The company has three business segments: Power (which contributes the majority of total revenue), Industry sector and International Operations. Bharat's product portfolio consists of heavy industrial equipment and components, including turbines, valves, pumps, boilers, and insulators. In addition, the company offers aftersales service to customers for maintenance and repairs and can help synchronize power plants. The majority of total revenue is derived from India, but the company has a footprint in many different regions.