EnBW Energie Baden-Wuerttemberg AG (LTS:0IHQ) GF Value Rank : 6 (As of Jun. 09, 2024)

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What is EnBW Energie Baden-Wuerttemberg AG GF Value Rank?

EnBW Energie Baden-Wuerttemberg AG has the GF Value Rank of 6.

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 EnBW Energie Baden-Wuerttemberg AG's GF Value Rank

For the Utilities - Diversified subindustry, EnBW Energie Baden-Wuerttemberg 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.

EnBW Energie Baden-Wuerttemberg AG's GF Value Rank Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, EnBW Energie Baden-Wuerttemberg AG's GF Value Rank distribution charts can be found below:

* The bar in red indicates where EnBW Energie Baden-Wuerttemberg AG's GF Value Rank falls into.

EnBW Energie Baden-Wuerttemberg AG GF Value Rank Related Terms

Thank you for viewing the detailed overview of EnBW Energie Baden-Wuerttemberg AG's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

EnBW Energie Baden-Wuerttemberg AG (LTS:0IHQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » EnBW Energie Baden-Wuerttemberg AG (LTS:0IHQ) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EBK:Germany

Address

Durlacher Allee 93, Karlsruhe, BW, DEU, 76131

Website

https://www.enbw.com

EnBW Energie Baden-Wuerttemberg AG is a German company which is active in the energy sector. It operates in three segments: Smart Infrastructure for Customers, which comprises the sale of electricity and gas, energy industry services and energy solutions, provision and expansion of quick-charging infrastructure and digital solutions for electromobility, broadband activities; System Critical Infrastructure segment is into the transmission and distribution of electricity and gas; and Sustainable Generation Infrastructure segment encompasses activities in the areas of renewable energies and conventional generation, district heating and waste management/environmental services. Geographically it generates majority of revenue from Germany.

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