KME Group SpA (MIL:KME) GF Value Rank : 2 (As of May. 26, 2024)

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What is KME Group SpA GF Value Rank?

KME Group SpA has the GF Value Rank of 2.

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 KME Group SpA's GF Value Rank

For the Copper subindustry, KME Group 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.

KME Group SpA's GF Value Rank Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, KME Group SpA's GF Value Rank distribution charts can be found below:

* The bar in red indicates where KME Group SpA's GF Value Rank falls into.

KME Group SpA GF Value Rank Related Terms

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KME Group SpA (MIL:KME) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » KME Group SpA (MIL:KME) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

IKGR:Italy MTJ3:Germany

Address

Foro Buonaparte 44, Milan, ITA, 20121

Website

https://www.kme.com

KME Group SpA is a diversified investment holding company. It invests in copper sector and financial and real estate assets sector. The copper sector includes the production and marketing of copper and copper-alloy semi-finished products. The financial and real estate assets sector includes the private equity activity, carried out mainly through the closed-ended investment fund, and the management of receivables. The company generates the majority of the revenue from the copper sector.