Inter RAO Lietuva AB (WAR:IRL) GF Value Rank : 4 (As of Jun. 22, 2024)

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What is Inter RAO Lietuva AB GF Value Rank?

Inter RAO Lietuva AB has the GF Value Rank of 4.

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 Inter RAO Lietuva AB's GF Value Rank

For the Utilities - Independent Power Producers subindustry, Inter RAO Lietuva AB'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.

Inter RAO Lietuva AB's GF Value Rank Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Inter RAO Lietuva AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Inter RAO Lietuva AB's GF Value Rank falls into.

Inter RAO Lietuva AB GF Value Rank Related Terms

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Inter RAO Lietuva AB (WAR:IRL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Inter RAO Lietuva AB (WAR:IRL) » Definitions » GF Value Rank

Comparable Companies

PHS:PERC KAR:SPWL MUS:KPCS MIC:TGKB KAR:EPQL KAR:ALTN OSL:NSOL XSGO:ENLASA KAR:NPL MUS:DGEN

Traded in Other Exchanges

N/A

Address

A. Tumeno Street 4, Block B, Vilnius, LTU, LT-01109

Website

https://www.interrao.lt

Inter RAO Lietuva AB along with its subsidiaries is engaged in the production, wholesale and retail trade of electricity in Lithuania. The company also owns a wind farm in western Lithuania. It imports and exports electricity, wholesale of electricity in the Baltic countries based on contracts and in the electricity exchange, retail trade of electricity in the Baltic countries, regulation and balancing services or suppliers and transmission system operators, wind energy, and investment.