Hero MotoCorp (Hero MotoCorp) GF Value Rank : 6 (As of May. 11, 2024)

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What is Hero MotoCorp GF Value Rank?

Hero MotoCorp has the GF Value Rank of 6.

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 Hero MotoCorp's GF Value Rank

For the Auto Manufacturers subindustry, Hero MotoCorp'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.

Hero MotoCorp's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Hero MotoCorp's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hero MotoCorp's GF Value Rank falls into.

Hero MotoCorp GF Value Rank Related Terms

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Hero MotoCorp (Hero MotoCorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hero MotoCorp Ltd (GREY:HRTQY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HEROMOTOCO:India 500182:India

Address

Nelson Mandela Road, The Grand Plaza, Plot No. 2, Vasant Kunj - Phase -II, New Delhi, IND, 110070

Website

https://www.heromotocorp.com

Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The company manufactures and distributes motorcycles, scooters, and related spare parts. Sales of motorcycles comprise the largest contribution to consolidated revenue, followed by scooter sales. While Hero MotoCorp derives the vast majority of revenue from domestic operations, the company also has operations in Latin America, South Asia, Africa, and the Middle East. Hero MotoCorp principally manufactures and assembles production domestically. The Company primarily operates in the automotive segment. The automotive segment includes all activities related to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories.

Hero MotoCorp (Hero MotoCorp) Headlines

From GuruFocus

Q3 2024 Hero MotoCorp Ltd Earnings Call Transcript

By GuruFocus Research • 02-12-2024