Spectrum Electrical Industries (NSE:SPECTRUM) GF Value Rank : 1 (As of Dec. 15, 2024)

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What is Spectrum Electrical Industries GF Value Rank?

Spectrum Electrical 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 Spectrum Electrical Industries's GF Value Rank

For the Electrical Equipment & Parts subindustry, Spectrum Electrical 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.

Spectrum Electrical Industries's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Spectrum Electrical Industries's GF Value Rank distribution charts can be found below:

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

Spectrum Electrical Industries GF Value Rank Related Terms

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Spectrum Electrical Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Spectrum Electrical Industries Ltd (NSE:SPECTRUM) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

Office No. 501, A&B, Omega Building, 5th Floor, Omega Tower, Hiranandani Garden, Powai, Mumbai, MH, IND, 400076

Website

https://spectrum-india.com

Spectrum Electrical Industries Ltd is an India-based contract manufacturer and a component supplier. It is mainly engaged in the business of designing and manufacturing electrical, automobile, and irrigation components. It offers a varieties of products under the domain of the electrical component including miniature circuit breaker (MCB) base and cover, distribution board, alternating current (AC) Box, modular electric board panels, fancy angle holders, calipers, filter pumps, carrier, and filter tank. It also offers various services including surface coatings, metallic stamping, plastics molding, and designing new molds, and dies press tools. The company mainly offers its products in the Indian market and it also exports some of its products.

Spectrum Electrical Industries Headlines

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