Centrotec SE (LTS:0DYD) GF Value Rank : 1 (As of Jun. 25, 2024)

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What is Centrotec SE GF Value Rank?

Centrotec SE 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 Centrotec SE's GF Value Rank

For the Building Products & Equipment subindustry, Centrotec SE'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.

Centrotec SE's GF Value Rank Distribution in the Construction Industry

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

* The bar in red indicates where Centrotec SE's GF Value Rank falls into.

Centrotec SE GF Value Rank Related Terms

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Centrotec SE (LTS:0DYD) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

CEV:Germany

Address

Am Patbergschen Dorn 9, Brilon, DEU, D-59929

Website

http://www.centrotec.de

Centrotec SE is a supplier of heating and climate control technology for buildings. The company organized into three main segments: Climate Systems, Gas Flue Systems, and Medical Technology and Engineering Plastics of which Climate Systems contributes the vast majority of its total revenue. The product range consists of mainly system solutions for the areas of heating, ventilation and climate control technology, as well as solar thermal, heat technology, and co-generation. Climate Systems focuses on active equipment and complete systems, while the Gas Flue Systems segment concentrates on accessories. Its Medical Technology and Engineering Plastics segment develops, produces and sells medical technology solutions.

Centrotec SE (LTS:0DYD) Headlines

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