Empresa Electrica Pehuenche (XSGO:PEHUENCHE) GF Value Rank : 1 (As of May. 15, 2024)

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What is Empresa Electrica Pehuenche GF Value Rank?

Empresa Electrica Pehuenche 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 Empresa Electrica Pehuenche's GF Value Rank

For the Utilities - Renewable subindustry, Empresa Electrica Pehuenche'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.

Empresa Electrica Pehuenche's GF Value Rank Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Empresa Electrica Pehuenche's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Empresa Electrica Pehuenche's GF Value Rank falls into.

Empresa Electrica Pehuenche GF Value Rank Related Terms

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

Empresa Electrica Pehuenche (XSGO:PEHUENCHE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Empresa Electrica Pehuenche SA (XSGO:PEHUENCHE) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

Santa Rosa 76, Piso 16, Santiago, CHL

Website

http://www.endesa.cl

Empresa Electrica Pehuenche SA is an electric power generation and distribution company. The firm is mainly engaged in the generation, transportation, distribution, and supply of electric power and promotes the commercialization of Liquefied Natural Gas in the industrial, residential, and commercial sectors. It also provides engineering and consulting services. The company owns the Pehuenche, Curillinque and Loma Alta hydroelectric plants, all located in the Maule River basin, Maule Region.

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