Fagerhult Group AB (CHIX:FAGS) GF Value Rank : 5 (As of May. 27, 2024)

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What is Fagerhult Group AB GF Value Rank?

Fagerhult Group AB has the GF Value Rank of 5.

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 Fagerhult Group AB's GF Value Rank

For the Electrical Equipment & Parts subindustry, Fagerhult Group AB'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.

Fagerhult Group AB's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Fagerhult Group AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Fagerhult Group AB's GF Value Rank falls into.

Fagerhult Group AB GF Value Rank Related Terms

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Fagerhult Group AB (CHIX:FAGS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Fagerhult Group AB (CHIX:FAGs) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

FAG:Sweden 2F0:Germany

Address

Avagen 1, Habo, SWE, SE-566 80

Website

https://www.fagerhultgroup.com

Fagerhult Group AB is a Swedish-based company that develops, manufactures, and markets professional lighting solutions. The company segments its brands in four business areas with similar focuses regarding customers' and geographical coverage: Collection, Premium, Professional, and Infrastructure. The company's main market includes Europe, but also present in North America, Asia and Australia. Its brands consist of atelje Lyktan, iGuzzini, LED Linear, WE-EF, Fagerhult, LTS, Arlight, Eagle Lighting, Whitecroft, Designplan, I-Valo and Veko.

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