SMA Solar Technology AG (SMA Solar Technology AG) GF Value Rank : 8 (As of May. 05, 2024)

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What is SMA Solar Technology AG GF Value Rank?

SMA Solar Technology AG has the GF Value Rank of 8.

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 SMA Solar Technology AG's GF Value Rank

For the Solar subindustry, SMA Solar Technology AG'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.

SMA Solar Technology AG's GF Value Rank Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, SMA Solar Technology AG's GF Value Rank distribution charts can be found below:

* The bar in red indicates where SMA Solar Technology AG's GF Value Rank falls into.

SMA Solar Technology AG GF Value Rank Related Terms

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SMA Solar Technology AG (SMA Solar Technology AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » SMA Solar Technology AG (OTCPK:SMTGF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SMTGY:USA 1S:Italy S92d:UK 0NIF:UK S92:Germany S92:Austria

Address

Sonnenallee 1, Niestetal, DEU, 34266

Website

https://www.sma.de

SMA Solar Technology AG produces, develops, and sells photovoltaic (PV) inverters and other technologies. It operates through several businesses that include Residential, Commercial, Utility, Off-Grid and Storage, and Service. The company's PV inverters convert direct currents from the module into alternating currents. Depending on demand, it is consumed directly into the home, stored, or fed into the utility grid. In SMA's primary business units it provides small PV systems for private applications to residential markets and medium-sized PV systems for commercial application. Utility clients are offered large-scale PV power plants in addition to grid service and monitoring functions.

SMA Solar Technology AG (SMA Solar Technology AG) Headlines

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