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EMBVF (Arca ContinentalB de CV) GF Value Rank : 7 (As of Dec. 14, 2024)


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What is Arca ContinentalB de CV GF Value Rank?

Arca ContinentalB de CV has the GF Value Rank of 7.

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 Arca ContinentalB de CV's GF Value Rank

For the Beverages - Non-Alcoholic subindustry, Arca ContinentalB de CV'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.

Arca ContinentalB de CV's GF Value Rank Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Arca ContinentalB de CV's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Arca ContinentalB de CV's GF Value Rank falls into.


Arca ContinentalB de CV GF Value Rank Related Terms

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Arca ContinentalB de CV Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Arca Continental SAB de CV (OTCPK:EMBVF) » Definitions » GF Value Rank
Comparable Companies
MEX:CULTIBAB KO PEP HKSE:09633 MNST KDP LSE:CCEP COCSF NSE:VBL CELH LSE:CCH TSE:2267 COKE SHSE:603156 FIZZ IST:CCOLA TSE:2593 HKSE:00220 LSE:BVIC TSE:2579
Traded in Other Exchanges
AC:Mexico AJZ:Germany
Address
Avenue San Jeronimo 813 Pte, Monterrey, NL, MEX, 64640
Website
https://www.arcacontal.com
Arca Continental is a major bottler for Coca-Cola, generating 94% of sales and nearly all profits by manufacturing and distributing sodas and nonsparkling drinks under Coca-Cola brands, which it sells to retailers and foodservice providers in the US and Latin America. Food and snacks under Arca's own brands make up the rest of its business. By region, Mexico remains the largest beverage market contributing 43% of sales, followed by the US (33%), Peru (8%), Ecuador (5%), and Argentina (5%). Coca-Cola has a 20% stake in AC Beverages, the entity that holds Arca's beverage assets in the US and Latin America.