Teva Pharmaceutical Industries (MEX:TEVA) GF Value Rank : 1 (As of Dec. 11, 2024)

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What is Teva Pharmaceutical Industries GF Value Rank?

Teva Pharmaceutical Industries 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 Teva Pharmaceutical Industries's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.

Teva Pharmaceutical Industries's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Teva Pharmaceutical Industries's GF Value Rank falls into.

Teva Pharmaceutical Industries GF Value Rank Related Terms

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Teva Pharmaceutical Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Teva Pharmaceutical Industries Ltd (MEX:TEVA) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TEVJF:USA TEVA:USA TEVA:Israel 0LER:UK TEV:Germany TEV:Germany TEV:Germany T1EV34:Brazil TEV:Bulgaria TEVA:Austria

Address

124 Dvora HaNevi’a Street, Tel Aviv, ISR, 6944020

Website

https://www.tevapharm.com

Teva Pharmaceutical Industries, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: central nervous system with Copaxone, Ajovy, and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.