GURUFOCUS.COM » STOCK LIST » Europe » Germany » FRA » Lechwerke AG (FRA:LEC) » Definitions » GF Value Rank
Switch to:

Lechwerke AG (FRA:LEC) GF Value Rank

: 10 (As of Today)
View and export this data going back to . Start your Free Trial

Lechwerke AG 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

For the Utilities - Diversified subindustry, Lechwerke AG'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.


Lechwerke AG GF Value Rank Distribution

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

* The bar in red indicates where Lechwerke AG's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Lechwerke AG GF Value Rank Related Terms

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

Lechwerke AG (FRA:LEC) Business Description

Lechwerke AG logo
Traded in Other Exchanges
Schaezlerstrasse 3, Augsburg, DEU, 86150
Lechwerke AG is a regional energy supplier in Bavaria and parts of Baden-Wurttemberg. The company offers both electricity and gas products as well as all energy-related services such as contracting, energy certificates and energy controlling. The company also works in the field of street lighting as well as the development and implementation of energy efficiency projects and comprehensive energy concepts.

Lechwerke AG (FRA:LEC) Headlines

No Headlines