Centrais Eletricas Brasileiras (BSP:ELET6) GF Value Rank : 5 (As of Apr. 25, 2024)

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What is Centrais Eletricas Brasileiras GF Value Rank?

Centrais Eletricas Brasileiras has the GF Value Rank of 5.

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 Centrais Eletricas Brasileiras's GF Value Rank

For the Utilities - Renewable subindustry, Centrais Eletricas Brasileiras'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.

Centrais Eletricas Brasileiras's GF Value Rank Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Centrais Eletricas Brasileiras's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Centrais Eletricas Brasileiras's GF Value Rank falls into.

Centrais Eletricas Brasileiras GF Value Rank Related Terms

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

Centrais Eletricas Brasileiras (BSP:ELET6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Centrais Eletricas Brasileiras SA (BSP:ELET6) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EBR.B:USA EBR:USA XELTO:Spain XELTB:Spain L3XB:Germany ELET5:Brazil ELET3:Brazil EBR:Argentina

Address

Rua da Quitanda 196, 9th floor, Centro, Rio de Janeiro, RJ, BRA, 20091-005

Website

https://www.eletrobras.com

Centrais Eletricas Brasileiras SA, or Eletrobras, is a mixed capital, Brazilian electric utility company of which the majority shareholder is the Government of Brazil. Eletrobras, through its subsidiaries, controls a sizable amount of total installed electricity generation, transmission, and distribution in Brazil. The company operates a portfolio of wind, thermal, hydro, and nuclear power plants located throughout the country. The vast majority of the total energy produced by Eletrobras comes from its hydroelectric facilities. The company primarily generates revenue from the administration segment. About half of Eletrobras' electricity sales are made using free market agreements, while the other half is completed through auctions and contracts.

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