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Raytheon Co (Raytheon Co) GF Value Rank : 0 (As of May. 25, 2024)


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What is Raytheon Co GF Value Rank?

Raytheon Co 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.


Raytheon Co GF Value Rank Related Terms

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Raytheon Co (Raytheon Co) Business Description

Traded in Other Exchanges
N/A
Address
870 Winter Street, Waltham, MA, USA, 02451
Raytheon is a U.S. defense contractor that posted just over $27 billion in sales during 2018. It operates through five segments: integrated defense systems, intelligence and information, missile systems, space and airborne systems, and a cybersecurity business branded Forcepoint. Sales to the U.S. government account for about 70% of consolidated revenue. Based in Waltham, Massachusetts, Raytheon employs more than 60,000 people.
Executives
William Spivey director
Letitia A Long director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
David C Wajsgras officer: Vice President 870 WINTER STREET, WALTHAM MA 02451
Marta R Stewart director C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Frank R Jimenez officer: VP, General Counsel, Secretary GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061
Michael J Wood officer: VP, Controller & CAO 870 WINTER STREET, WALTHAM MA 02451
Ellen M Pawlikowski director 870 WINTER STREET, WALTHAM MA 02451
Robert O Work director 870 WINTER STREET, WALTHAM MA 02451
Tracy A Atkinson director MFS INVESTMENT MANAGEMENT, 500 BOYLSTON ST., BOSTON MA 02116
Roy Azevedo officer: Vice President 870 WINTER STREET, WALTHAM MA 02451
Wesley D Kremer officer: Vice President 870 WINTER STREET, WALTHAM MA 02451
Thomas A Kennedy director, officer: Chairman and CEO 870 WINTER STREET, WALTHAM MA 02451
George Oliver director 5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Winnefeld James A Jr director 870 WINTER STREET, WALTHAM MA 02451
Robert E Beauchamp director 2101 CITYWEST BLVD, HOUSTON TX 77042-2827

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