Redeiaoracion (XMAD:RED) GF Value Rank : 7 (As of Apr. 25, 2024)

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What is Redeiaoracion GF Value Rank?

Redeiaoracion has the GF Value Rank of 7.

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 Redeiaoracion's GF Value Rank

For the Utilities - Regulated Electric subindustry, Redeiaoracion'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.

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

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

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

Redeiaoracion GF Value Rank Related Terms

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Redeiaoracion (XMAD:RED) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Redeia Corporacion SA (XMAD:RED) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

RDEIY:USA RDEIF:USA 1REE:Italy REDe:UK 0RI5:UK RE21:Germany

Address

Paseo del Conde de los Gaitanes, 177, Alcobendas, Madrid, ESP, 28109

Website

https://www.ree.es

Redeia owns and operates the Spanish electric transmission system. The company has acquired almost all of the nation's power grid, which other owners were forced to sell to it by government decree. Its activities are regulated by the National Energy Commission, which answers to the Spanish legislature. Redeia also operates a small fibre-optics network in Spain and has a growing Latin American infrastructure business. The group significantly increased its exposure to telecommunications by acquiring Spanish communications satellite operator Hispasat from Abertis in 2019.

Redeiaoracion (XMAD:RED) Headlines

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