Godrej Consumer Products (BOM:532424) GF Value Rank : 9 (As of May. 05, 2024)

View and export this data going back to 2001. Start your Free Trial

What is Godrej Consumer Products GF Value Rank?

Godrej Consumer Products 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 Godrej Consumer Products's GF Value Rank

For the Household & Personal Products subindustry, Godrej Consumer Products'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.

Godrej Consumer Products's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Godrej Consumer Products's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Godrej Consumer Products's GF Value Rank falls into.

Godrej Consumer Products GF Value Rank Related Terms

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

Godrej Consumer Products (BOM:532424) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Godrej Consumer Products Ltd (BOM:532424) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

GODREJCP:India

Address

Eastern Express Highway, 4th Floor, Godrej One, Pirojshanagar, Vikhroli (East), Mumbai, MH, IND, 400079

Website

https://www.godrejcp.com

Godrej Consumer Products Ltd is a household and personal care producer. The company has three main product categories: home care, hair care, and personal care. Godrej Consumer Products serves different geographic regions: Asia (India, Indonesia, Middle East, Myanmar, Nepal, Pakistan, Sri Lanka); Africa (South Africa, Nigeria, Mozambique, Kenya); Latin America (Argentina, Bolivia, Chile, Paraguay, and Uruguay); and Europe (the United Kingdom). The brand portfolio includes Roby, Renew, Darling, and Inecto in hair care; Hit, Ezee, and Good Knight in-home care; and Mitu, Protekt, and Cinthol in personal care.

Godrej Consumer Products (BOM:532424) Headlines

No Headlines