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Sanken Electric Co (Sanken Electric Co) GF Value Rank : 10 (As of May. 18, 2024)


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What is Sanken Electric Co GF Value Rank?

Sanken Electric Co 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 Sanken Electric Co's GF Value Rank

For the Semiconductors subindustry, Sanken Electric Co'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.


Sanken Electric Co's GF Value Rank Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Sanken Electric Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sanken Electric Co's GF Value Rank falls into.



Sanken Electric Co GF Value Rank Related Terms

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Sanken Electric Co (Sanken Electric Co) Business Description

Traded in Other Exchanges
Address
3-6-3, Kitano, Saitama-ken, Niiza-shi, JPN, 352-8666
Sanken Electric Co Ltd manufactures, sells, and purchases electric equipment and apparatuses. Its product lineup includes semiconductors, power line filters, inverters, DC power supplies, and other items. Products are offered to the automotive, power supply, LED, and other markets for purposes such as meeting global energy conservation regulations. Semiconductors are the company's leading sales generator and find use in automobiles, home appliances, and industrial automation. In addition to having its equipment manufactured domestically (Japan), and in regions such as North America, the company has stationed sales offices in each region to work with clients and meet specific needs.

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