GURUFOCUS.COM » STOCK LIST » USA » NYSE » The AES Corp (NYSE:AES) » Definitions » GF Value Rank
Switch to:

The AES GF Value Rank

: 5 (As of Today)
View and export this data going back to 1991. Start your Free Trial

The AES 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

For the Utilities - Diversified subindustry, The AES'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.

   

The AES GF Value Rank Distribution

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

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



The AES GF Value Rank Related Terms

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


The AES Business Description

The AES logo
Address
4300 Wilson Boulevard, 11th Floor, Arlington, VA, USA, 22203
AES is a global power company with businesses in 14 countries. It has a portfolio of more than 100 power plants and wind and solar farms. Its current construction program will increase its net generating capacity to over 35 gigawatts. AES also has majority ownership and operates six electric utilities distributing power to 2.4 million customers in the U.S. and El Salvador.
Executives
Coughlin Stephen officer: EVP and CFO 4300 WILSON BLVD. 11TH FLOOR ARLINGTON VA 22203
Shaughnessy Maura director 4300 WILSON BLVD. ARLINGTON VA 22203
Sebastian Teresa Mosley director 1000 DARDEN CENTER DRIVE ORLANDO FL 32837
Laulis Julia M. director 210 E. EARLL DRIVE PHOENIX AZ 85012
Kohan Sherry officer: Vice President & Controller 4300 WILSON BLVD. ARLINGTON VA 22203
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Davidson Janet director 600 MOUNTAIN AVE MURRAY HILL NJ 07974
Pimenta Gustavo officer: SVP and CFO 4300 WILSON BLVD. 11TH FLOOR ARLINGTON VA 22203
Dubuc Manuel Perez officer: SVP, New Energy Solutions 4300 WILSON BLVD. ARLINGTON VA 22203
Moreno Leonardo officer: SVP, Corporate Strategy 4300 WILSON BLVD. ARLINGTON VA 22203
Rubiolo Juan Ignacio officer: VP, MCAC SBU President 4300 WILSON BLVD. ARLINGTON VA 22203
Krueger Lisa officer: VP, US SBU President 4300 WILSON BLVD. ARLINGTON VA 22203
Nebreda Julian officer: VP, Andes SBU President 4300 WILSON BLVD. ARLINGTON VA 22203
Freedman Paul L officer: SVP and General Counsel 4300 WILSON BLVD ARLINGTON VA 22203
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129

The AES Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)