Kumho Petro Chemical (XKRX:011780) GF Value Rank : 3 (As of May. 22, 2024)

View and export this data going back to 1988. Start your Free Trial

What is Kumho Petro Chemical GF Value Rank?

Kumho Petro Chemical has the GF Value Rank of 3.

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 Kumho Petro Chemical's GF Value Rank

For the Specialty Chemicals subindustry, Kumho Petro Chemical'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.

Kumho Petro Chemical's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kumho Petro Chemical's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Kumho Petro Chemical's GF Value Rank falls into.

Kumho Petro Chemical GF Value Rank Related Terms

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

Kumho Petro Chemical (XKRX:011780) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Kumho Petro Chemical Ltd (XKRX:011780) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

011785:Korea

Address

21/24F Kumho Asiana Main Tower 115, Sinmunno 1-ga, Jongno-gu, Seoul, KOR, 110-061

Website

http://www.kkpc.com

Kumho Petro Chemical Ltd is a manufacturer of synthetic rubbers, and does business in synthetic resins, specialty chemicals, electronic materials, nanocarbon, energy, and building materials. The synthetic rubber business constitutes the largest portion of the company's revenue, and its products are applied to tires, shoes, auto parts, and other industrial applications. Kumho's main customers, under the rubber segment, are global tire manufacturers. Second to the rubber business in revenue, the synthetic resins business manufactures products used in auto parts, home appliances, beverage containers, and a host of other products. The company's revenue is largely derived from international exports, but the remainder of sales are executed in Korea.

Kumho Petro Chemical (XKRX:011780) Headlines

No Headlines