HLMMF (Holmen AB) GF Value Rank : 9 (As of Apr. 23, 2025)

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What is Holmen AB GF Value Rank?

Holmen AB has the GF Value Rank of 9.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It 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.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Holmen AB's GF Value Rank

For the Paper & Paper Products subindustry, Holmen AB'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.

Holmen AB's GF Value Rank Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Holmen AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Holmen AB's GF Value Rank falls into.

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Holmen AB GF Value Rank Related Terms

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Holmen AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Holmen AB (OTCPK:HLMMF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HOLM B:Sweden HOLM A:Sweden HOLMBs:UK 0XS9:UK HL9C:Germany

Address

Strandvagen 1, P.O. Box 5407, Stockholm, SWE, SE-114 84

Website

https://www.holmen.com

Holmen AB produces and sells timber, wood products, a variety of paper products, and electricity generated through renewable energy sources. The company organizes itself into four segments based on product type: Forest, Board and Paper, Wood Products, and Renewable Energy. The company's product portfolio includes logs, biofuel, paperboard for consumer packaging, paper for books, construction timber, and renewable energy from hydro and wind power. The company's customer segment is composed of printing firms, sawmills, pulp mills, paper mills, the construction industry, and the packaging industry, among others. The vast majority of revenue comes from the company's paper and paperboard segments combined, and it earns the majority of its revenue in Europe.