Surmodics (STU:SU6) GF Value Rank : 7 (As of Jun. 21, 2024)

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What is Surmodics GF Value Rank?

Surmodics has the GF Value Rank of 7.

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 Surmodics's GF Value Rank

For the Medical Devices subindustry, Surmodics'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.

Surmodics's GF Value Rank Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Surmodics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Surmodics's GF Value Rank falls into.

Surmodics GF Value Rank Related Terms

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Surmodics (STU:SU6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Surmodics Inc (STU:SU6) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SRDX:USA SU6:Germany

Address

9924 West 74th Street, Eden Prairie, MN, USA, 55344

Website

https://www.surmodics.com

Surmodics Inc is a provider of surface modification and in vitro diagnostic technologies to the healthcare industry. The company's mission is to improve the treatment and detection of disease by using its technology to provide solutions to difficult medical devices and diagnostic challenges. It has two reportable segments: Medical device unit; Manufacture of performance coatings, including surface modification coating technologies and the Vitro diagnostics unit; Manufacture of chemical and biological components used in in vitro diagnostic immunoassay and molecular tests within the diagnostic and biomedical research markets. Surmodics derives majority of its revenue from the Medical Device segment.

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