Horizon Global (FRA:2H6) GF Value Rank : 4 (As of May. 02, 2024)

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What is Horizon Global GF Value Rank?

Horizon Global has the GF Value Rank of 4.

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 Horizon Global's GF Value Rank

For the Auto Parts subindustry, Horizon Global'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.

Horizon Global's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Horizon Global's GF Value Rank distribution charts can be found below:

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

Horizon Global GF Value Rank Related Terms

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Horizon Global (FRA:2H6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Horizon Global Corp (FRA:2H6) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

47912 Halyard Drive, Suite 100, Plymouth, MI, USA, 48170

Website

http://www.horizonglobal.com

Horizon Global Corp designs, manufactures and distributes towing, trailering, cargo management and related products for original equipment to aftermarket, automotive, and retail markets. It holds various brands including draw tite, hayman reese, reese, aqua clear, bulldog, fulton, harper, hidden hitch, highland, laitner, park side, pro series, reese towpower, rola, tekonsha, tow ready, trimotive americas and wesberg. The company's geographical segment includes Horizon Americas and Horizon Europe-Africa.

Horizon Global (FRA:2H6) Headlines

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