Hochtief AG (Hochtief AG) GF Value Rank : 3 (As of Apr. 29, 2024)

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What is Hochtief AG GF Value Rank?

Hochtief AG 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 Hochtief AG's GF Value Rank

For the Engineering & Construction subindustry, Hochtief AG'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.

Hochtief AG's GF Value Rank Distribution in the Construction Industry

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

* The bar in red indicates where Hochtief AG's GF Value Rank falls into.

Hochtief AG GF Value Rank Related Terms

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Hochtief AG (Hochtief AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hochtief AG (OTCPK:HOCFF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

1HOT:Italy HOTd:UK 0EPW:UK HOT:Germany HOT:Austria

Address

Alfredstrasse 236, Essen, NW, DEU, 45133

Website

https://www.hochtief.com

Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.