Continental AG (XTER:CON) GF Value Rank : 9 (As of Apr. 26, 2024)

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What is Continental AG GF Value Rank?

Continental AG has the GF Value Rank of 9.

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 Continental AG's GF Value Rank

For the Auto Parts subindustry, Continental 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.

Continental AG's GF Value Rank Distribution in the Vehicles & Parts Industry

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

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

Continental AG GF Value Rank Related Terms

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Continental AG (XTER:CON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Continental AG (XTER:CON) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CTTAY:USA CTTAF:USA CTT:Romania CON:Italy CONd:UK 0LQ1:UK

Address

Vahrenwalder Strasse 9, Hanover, NI, DEU, 30165

Website

https://www.continental.com

Continental is a global auto supplier and tiremaker. Operating segments include the automotive group (electrical architecture and networking, autonomous mobility, safety and motion, smart mobility, and user experience), tires, and ContiTech which uses rubber in industrial and automotive components and systems. Last year, automotive group revenue was around 48% of the total, tire was 35%, ContiTech was 16%, and contract manufacturing for Vitesco was 1%. Top five customers include Ford, Mercedes-Benz, the Renault-Nissan-Mitsubishi alliance, Stellantis, and Volkswagen, representing about 32% of total revenue. Europe, at 47% of total revenue, is the companies largest market, followed by North America at 27%, Asia (mostly China) at 22%, and 4% in other regions.

Executives

Christian Koetz	Board of Directors
Katja Dürrfeld	Board of Directors
Philip Nelles	Board of Directors
Nikolai Setzer	Board of Directors
Dr. Ariane Reinhart	Board of Directors
Frank Jourdan	Board of Directors
Helmut Matschi	Board of Directors
Andreas Wolf	Board of Directors

Continental AG (XTER:CON) Headlines

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