Danieli & C. Officine Meccaniche SpA (LTS:0N4I) GF Value Rank : 10 (As of Dec. 12, 2024)

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What is Danieli & C. Officine Meccaniche SpA GF Value Rank?

Danieli & C. Officine Meccaniche SpA has the GF Value Rank of 10.

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 Danieli & C. Officine Meccaniche SpA's GF Value Rank

For the Specialty Industrial Machinery subindustry, Danieli & C. Officine Meccaniche SpA'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.

Danieli & C. Officine Meccaniche SpA's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Danieli & C. Officine Meccaniche SpA's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Danieli & C. Officine Meccaniche SpA's GF Value Rank falls into.

Danieli & C. Officine Meccaniche SpA GF Value Rank Related Terms

Thank you for viewing the detailed overview of Danieli & C. Officine Meccaniche SpA's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Danieli & C. Officine Meccaniche SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Danieli & C. Officine Meccaniche SpA (LTS:0N4I) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

DANR:Italy DAN:Italy DANRm:UK DANm:UK 0APM:UK DAS:Germany

Address

Via Nazionale 41, Buttrio, Udine, ITA, 33042

Website

https://www.danieli.com

Danieli & C. Officine Meccaniche SpA is an Italy-based company that is engaged in manufacturing and distribution of steel and other nonferrous metal products as well as plant building. The company operates through two segments, namely steelmaking and plant making. The Steelmaking segment manufactures ingots, forged bars, blooms, rolled bars, bar in coils and others. End customers primarily come from the mechanical, automotive, oil & gas, power generation and other sectors. The Plant Making segment designs and builds mines, pellet production plants, furnaces, rolling mills and other various plants and facilities. The company has a global presence, with Europe, Middle East and Far East being the three largest markets for the company.

Danieli & C. Officine Meccaniche SpA Headlines

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