ERG SPA (MIL:ERG) GF Value Rank : 10 (As of Jun. 25, 2024)

View and export this data going back to 1997. Start your Free Trial

What is ERG SPA GF Value Rank?

ERG 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 ERG SPA's GF Value Rank

For the Utilities - Renewable subindustry, ERG 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.

ERG SPA's GF Value Rank Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, ERG SPA's GF Value Rank distribution charts can be found below:

* The bar in red indicates where ERG SPA's GF Value Rank falls into.

ERG SPA GF Value Rank Related Terms

Thank you for viewing the detailed overview of ERG SPA's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

ERG SPA (MIL:ERG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » ERG SPA (MIL:ERG) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ERGm:UK 0MHC:UK ER9:Germany

Address

Via De Marini, 1, Torre WTC, Genoa, ITA, 16149

Website

https://www.erg.eu

ERG SPA produces electricity from clean, renewable, and sustainable sources. The company produces wind power, and electricity as a hydroelectric operator to markets across Europe. Electricity is also generated from natural gas operations located in Italy. ERG's wind power production is handled by subsidiary ENG Renew that focuses on developing, building, and operating wind assets. Hydropower and natural gas operations are split off into ERG Power Generation. The company's hydro assets include plants, dams, reservoirs, and a pumping station. Natural gas production contributes the most revenue for ERG, and is churned out from a cogeneration plant that produces electricity and steam. Electricity from the plant is either fed into Italy's national grid or used to power other industrial plants.

ERG SPA (MIL:ERG) Headlines

No Headlines