Novolipetsk Steel PJSC (MIC:NLMK) GF Value Rank : 8 (As of May. 04, 2024)

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What is Novolipetsk Steel PJSC GF Value Rank?

Novolipetsk Steel PJSC has the GF Value Rank of 8.

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 Novolipetsk Steel PJSC's GF Value Rank

For the Steel subindustry, Novolipetsk Steel PJSC'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.

Novolipetsk Steel PJSC's GF Value Rank Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Novolipetsk Steel PJSC's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Novolipetsk Steel PJSC's GF Value Rank falls into.

Novolipetsk Steel PJSC GF Value Rank Related Terms

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Novolipetsk Steel PJSC (MIC:NLMK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Novolipetsk Steel PJSC (MIC:NLMK) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

2, Metallurgov Sq., Lipetsk, RUS, 398040

Website

https://www.nlmk.com

Novolipetsk Steel PJSC is a Russia-based steelmaker with production assets located in Russia, Europe, and the United States. The company's metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and off shore wind turbines. The company operates through six segments, namely Mining, Russian flat products, Russian long products, NLMK USA, NLMK DanSteel and Plates Distribution Network, and Investments in NBH. Russian flat products for over half of the company's revenue. Russia, Europe, North America, and the Middle East are the four largest markets for the company.

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