GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Grupo Argos SA (BOG:GRUPOARGOS) » Definitions » GF Value Rank

Grupo Argos (BOG:GRUPOARGOS) GF Value Rank : 3 (As of May. 21, 2024)


View and export this data going back to 1981. Start your Free Trial

What is Grupo Argos GF Value Rank?

Grupo Argos has the GF Value Rank of 3.

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 Grupo Argos's GF Value Rank

For the Building Materials subindustry, Grupo Argos'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.


Grupo Argos's GF Value Rank Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Grupo Argos's GF Value Rank distribution charts can be found below:

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



Grupo Argos GF Value Rank Related Terms

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


Grupo Argos (BOG:GRUPOARGOS) Business Description

Traded in Other Exchanges
Address
Carrera 43A, No. 1A Sur 143, Santillana Center - South Tower, Medellin, COL
Grupo Argos SA is a holding company with businesses spanning multiple industries including cement, energy, highway and airport construction, port operations, real estate, and coal. The Cement segment, which generates the majority of revenue, has a majority ownership stake in Cementos Argos, which manufactures and sells cement, concrete, and cement-related products in multiple countries throughout the Americas. The Energy segment has a majority ownership stake in a company named Celsia, which generates and sells gas, thermal energy, and hydroelectric energy throughout Central and South America.

Grupo Argos (BOG:GRUPOARGOS) Headlines

No Headlines