Arabian Pipes Co (SAU:2200) GF Value Rank : 6 (As of Apr. 15, 2025)

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What is Arabian Pipes Co GF Value Rank?

Arabian Pipes Co has the GF Value Rank of 6.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It 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.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Arabian Pipes Co's GF Value Rank

For the Steel subindustry, Arabian Pipes Co'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.

Arabian Pipes Co's GF Value Rank Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Arabian Pipes Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Arabian Pipes Co's GF Value Rank falls into.

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Arabian Pipes Co GF Value Rank Related Terms

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Arabian Pipes Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Arabian Pipes Co (SAU:2200) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Riyadh Third Industrial City, P.O. Box 42734, Riyadh, SAU, 11551

Website

http://www.arabian-pipes.com

Arabian Pipes Co is engaged in the production and marketing of longitudinally welded steel pipes for pipelines and for construction and commercial purposes. Its other activities include bending, shaping, and threading pipes from the outside and inside, carrying out commercial business such as selling and buying pipes, and their accessories, carrying out pipeline extension works, manufacturing pipes, hoses, plastic pipes, their connections and accessories, and manufacturing hollow iron and steel.

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