American Woodmark (FRA:AHQ) GF Value Rank : 1 (As of May. 06, 2024)

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What is American Woodmark GF Value Rank?

American Woodmark has the GF Value Rank of 1.

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 American Woodmark's GF Value Rank

For the Furnishings, Fixtures & Appliances subindustry, American Woodmark'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.

American Woodmark's GF Value Rank Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, American Woodmark's GF Value Rank distribution charts can be found below:

* The bar in red indicates where American Woodmark's GF Value Rank falls into.

American Woodmark GF Value Rank Related Terms

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

American Woodmark (FRA:AHQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » American Woodmark Corp (FRA:AHQ) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AMWD:USA

Address

561 Shady Elm Road, Winchester, VA, USA, 22602

Website

https://www.americanwoodmark.com

American Woodmark Corp manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The company offers framed stock cabinets in over 400 different cabinet lines and prices from relatively inexpensive to medium-priced styles. Its products are sold on a national basis across the United States to the remodeling and new home construction markets. The products are sold under the brand names American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series, and Waypoint Living Spaces.

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