IRCE SpA (MIL:IRC) GF Value Rank : 6 (As of May. 30, 2024)

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What is IRCE SpA GF Value Rank?

IRCE SpA has the GF Value Rank of 6.

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 IRCE SpA's GF Value Rank

For the Electrical Equipment & Parts subindustry, IRCE SpA'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.

IRCE SpA's GF Value Rank Distribution in the Industrial Products Industry

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

* The bar in red indicates where IRCE SpA's GF Value Rank falls into.

IRCE SpA GF Value Rank Related Terms

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IRCE SpA (MIL:IRC) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

IRQ:Germany

Address

Via Lasie 12/A, Imola, ITA, 40026

Website

https://www.irce.it

IRCE SpA is an Italy-based company engaged in the manufacturing of its core activities through its segments namely the Winding wires segment and Cables segment. The Winding wire segment consists of the manufacturing of electric motors and generators, transformers, relays, and solenoid valves whereas the Cable segment includes energy and data cables that are supplied to industries like construction, civil and industrial engineering, and electoral devices for consumable durable goods. It generates the majority of its revenue from the winding wires segment. The company products include Enamelled copper and aluminum round wire, Copper and aluminum rectangular wire, Medium Voltage Cables, and others. The company's geographical segments are Italy, the European Union, and Non-European Union.