Cia Electro Metalurgica (XSGO:ELECMETAL) GF Value Rank : 2 (As of May. 11, 2024)

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What is Cia Electro Metalurgica GF Value Rank?

Cia Electro Metalurgica has the GF Value Rank of 2.

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 Cia Electro Metalurgica's GF Value Rank

For the Steel subindustry, Cia Electro Metalurgica'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.

Cia Electro Metalurgica's GF Value Rank Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Cia Electro Metalurgica's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Cia Electro Metalurgica's GF Value Rank falls into.

Cia Electro Metalurgica GF Value Rank Related Terms

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Cia Electro Metalurgica (XSGO:ELECMETAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Cia Electro Metalurgica SA (XSGO:ELECMETAL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Av. Andres Bello 2233, 11th and 12th floors, Providencia, Santiago, CHL

Website

http://www.elecmetal.cl

Cia Electro Metalurgica SA is the supplier of integrated wear solutions for mining, construction, and industry. The company has diversified its operations into the following segments, being Metallurgical, Glass Containers, Wines, Media, Electric Generation, and Investments. The metallurgical segment which generates maximum revenue for the company engages in the manufacturing and marketing of wear parts for crushing, grinding, and earthworks for mining and other industries. The Glass Containers segment is engaged in the manufacturing and marketing of glass containers for wine, beers, soft drinks, liquors, food, and laboratories. The Wine segment produces and markets wines and spirits. The Media segment includes written press and editorials.

Cia Electro Metalurgica (XSGO:ELECMETAL) Headlines

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