Forbo Holding AG (CHIX:FORNZ) GF Value Rank : 10 (As of Jun. 02, 2024)

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What is Forbo Holding AG GF Value Rank?

Forbo Holding AG has the GF Value Rank of 10.

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 Forbo Holding AG's GF Value Rank

For the Building Products & Equipment subindustry, Forbo Holding 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.

Forbo Holding AG's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Forbo Holding AG's GF Value Rank distribution charts can be found below:

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

Forbo Holding AG GF Value Rank Related Terms

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Forbo Holding AG (CHIX:FORNZ) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

FORN:Switzerland

Address

Lindenstrasse 8, P.O. Box 1339, Baar, CHE, CH-6341

Website

https://www.forbo.com

Forbo Holding AG manufactures and sells flooring and movement systems. The company organizes itself into two segments based on product type. The Flooring Systems segment, which generates the majority of revenue, sells commercial and residential floor coverings, entrance flooring systems, and building and construction flooring adhesives to the construction and remodeling industries. The Movement Systems segment sells conveyor and processing belts, plastic modular belts, power transmission belts, and flat modular belts, to the food, automotive, and fitness equipment industries. The majority of revenue comes from Europe.

Forbo Holding AG (CHIX:FORNZ) Headlines

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