Tornado Global Hydrovacs (TSXV:TGH) GF Value Rank : 9 (As of May. 16, 2024)

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What is Tornado Global Hydrovacs GF Value Rank?

Tornado Global Hydrovacs has the GF Value Rank of 9.

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 Tornado Global Hydrovacs's GF Value Rank

For the Farm & Heavy Construction Machinery subindustry, Tornado Global Hydrovacs'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.

Tornado Global Hydrovacs's GF Value Rank Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Tornado Global Hydrovacs's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Tornado Global Hydrovacs's GF Value Rank falls into.

Tornado Global Hydrovacs GF Value Rank Related Terms

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Tornado Global Hydrovacs (TSXV:TGH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Tornado Global Hydrovacs Ltd (TSXV:TGH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TGHLF:USA

Address

7015 MacLeod Trail South West, Suite 510, Calgary, AB, CAN, T2H 2K6

Website

https://www.tghl.ca

Tornado Global Hydrovacs Ltd is a truck manufacturer. The company, through its subsidiaries, designs, fabricates, manufactures, and sells hydrovac trucks to excavation service providers in the municipal and oil and gas markets in North America and has expanded into China. It has two geographic operating segments, North American manufacturing and sales operations, and its China operation. The majority of its revenue is derived from the North American manufacturing segment.

Executives

Alastair James Robertson

Senior Officer