Caribbean Utilities Co (Caribbean Utilities Co) GF Value Rank : 10 (As of Apr. 28, 2024)

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

What is Caribbean Utilities Co GF Value Rank?

Caribbean Utilities Co has the GF Value Rank of 10.

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 Caribbean Utilities Co's GF Value Rank

For the Utilities - Regulated Electric subindustry, Caribbean Utilities Co'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.

Caribbean Utilities Co's GF Value Rank Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Caribbean Utilities Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Caribbean Utilities Co's GF Value Rank falls into.

Caribbean Utilities Co GF Value Rank Related Terms

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

Caribbean Utilities Co (Caribbean Utilities Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Caribbean Utilities Co Ltd (OTCPK:CUPUF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CUP.U:Canada

Address

457 North Sound Road, P.O. Box 38, Grand Cayman, CYM, KY1-1101

Website

https://www.cuc-cayman.com

Caribbean Utilities Co Ltd is the sole supplier of electricity on Grand Cayman with a total installed generating capacity of 166 MW, nine transformer substations, approximately 552 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cable. The Company uses diesel generation to produce electricity for Grand Cayman.