ITO EN (TSE:25935) GF Value Rank : 2 (As of May. 04, 2024)

View and export this data going back to 1992. Start your Free Trial

What is ITO EN GF Value Rank?

ITO EN has the GF Value Rank of 2.

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 ITO EN's GF Value Rank

For the Beverages - Non-Alcoholic subindustry, ITO EN'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.

ITO EN's GF Value Rank Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, ITO EN's GF Value Rank distribution charts can be found below:

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

ITO EN GF Value Rank Related Terms

Thank you for viewing the detailed overview of ITO EN's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

ITO EN (TSE:25935) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » ITO EN Ltd (TSE:25935) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ITOEF:USA 2593:Japan

Address

47-10, Honmachi 3-chome, Shibuya-ku, Tokyo, JPN, 151-8550

Website

https://www.itoen.co.jp

ITO EN Ltd makes beverages and other tea and nutritional products that it sells in Japan. Ito En primarily sells green tea products, including ready-to-drink beverages, tea bags, and other tea leaf products, under its Oi Ocha brand. Other beverages the company sells include black tea, Chinese tea, coffee, vegetable beverages, fruit beverages, mineral water, and functional beverages. The Leaf- and Drink-Related business segment makes up roughly 90% of the company's total revenue. Most remaining revenue is generated from Ito En's restaurant business, which operates hundreds of Tully's coffee shops in Japan.

ITO EN (TSE:25935) Headlines

No Headlines