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Mota-Engil Africa NV (LTS:0R6D) GF Value Rank : 0 (As of Jun. 22, 2024)


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What is Mota-Engil Africa NV GF Value Rank?

Mota-Engil Africa NV has the GF Value Rank of 0.

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.


Mota-Engil Africa NV GF Value Rank Related Terms

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Mota-Engil Africa NV (LTS:0R6D) Business Description

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Mota-Engil Africa NV was incorporated on October 31, 2012 by a notarial deed of incorporation as a private company with limited liability under the laws of the Netherlands. The Company is a provider of integrated engineering and construction services. The Company also provides other services, across its target markets in Sub-Saharan Africa. Its portfolio of services ranges from Engineering and Construction which includes infrastructure such as roads, railways, bridges and dams, mining services, civil construction works and real estate construction and services, Logistics which includes ports and other infrastructure management and Environment and Services which includes waste management and collection and water treatment and distribution. The Company currently operates in ten countries comprising its primary markets of Angola, Malawi and Mozambique as well as its other markets of Cape Verde, Ghana, São Tomé and Príncipe, South Africa, Uganda, Zambia and Zimbabwe.

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