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EAU Technologies (EAU Technologies) GF Value Rank : 0 (As of Jun. 19, 2024)


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What is EAU Technologies GF Value Rank?

EAU Technologies has the GF Value Rank of 0.

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.


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EAU Technologies (EAU Technologies) Business Description

Traded in Other Exchanges
N/A
Address
1890 Cobb International Boulevard, Suite A, Kennesaw, GA, USA, 30152
EAU Technologies Inc is a supplier of water electrolysis technology in the United States. Its primary market focus in on Clean-In-Place applications, especially in food and beverage processing. The company provides electrolyzed oxidative and electrolyzed reductive water equipment for industrial and commercial applications. It serves a diverse set of markets, including agriculture, consumer products, healthcare, hospitality and restaurant, and pharmaceutical.
Executives
Wade Bradley officer: Chief Executive Officer
Jay S Potter director 10509 VISTA SORRENTO PKWY, SUITE 300, SAN DIEGO CA 92121

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