Orascom Construction (CAI:ORAS) GF Value Rank : 1 (As of Jun. 16, 2024)

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What is Orascom Construction GF Value Rank?

Orascom Construction 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 Orascom Construction's GF Value Rank

For the Engineering & Construction subindustry, Orascom Construction'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.

Orascom Construction's GF Value Rank Distribution in the Construction Industry

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

* The bar in red indicates where Orascom Construction's GF Value Rank falls into.

Orascom Construction GF Value Rank Related Terms

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Orascom Construction (CAI:ORAS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Orascom Construction PLC (CAI:ORAS) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Office 301, Level 3, Gate Village-Building 1, P.O. Box 507031, Dubai International Financial Centre, Dubai, ARE

Website

https://www.orascom.com

Orascom Construction PLC is an engineering company in the United Arab Emirates. Its area of operations are infrastructure, industrial and commercial projects predominantly in the Middle East and also in North Africa, the United States and the Pacific Rim regions. The company's brands comprise Orascom, Contrack Watts, The Weirz Company, The Besix Group, Concessions and Investments, Construction Materials and Property Management.

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