Meritor (Meritor) GF Value Rank : 3 (As of Apr. 26, 2024)

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What is Meritor GF Value Rank?

Meritor has the GF Value Rank of 3.

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 Meritor's GF Value Rank

For the Auto Parts subindustry, Meritor'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.

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

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

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

Meritor GF Value Rank Related Terms

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

Meritor (Meritor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Meritor Inc (NYSE:MTOR) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

2135 West Maple Road, Troy, MI, USA, 48084-7186

Website

https://www.meritor.com

Meritor Inc is a manufacturer of automobile parts for commercial vehicles and industrial markets. The company offers drivetrain, axle, brake, and suspension solutions for commercial trucks, trailers, buses, coaches, off-highway machinery, and defence contractors. The company serves original equipment markets as well as the aftermarket segment for the transportation and industrial sectors. Meritor generates the majority of its revenue from its commercial truck and industrial segment. Geographically, sales are focused on North American markets.

Executives

Anderson Carl Douglas Ii	officer: SVP and CFO	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
John Nelligan	officer: SVP & Pres., Truck, Americas	2490 PEBBLE BEACH DRIVE OAKLAND MI 48363
Jeffrey A Craig	director, officer: CEO & President	MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Chris Villavarayan	officer: Pres., Americas	C/O MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Paul Bialy	officer: VP, Controller & PAO	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Ken Hogan	officer: SVP & Pres. Truck, EUR & APAC	8250 LINCOLN DR HUNTINGTON WOODS MI 48070
Elizabeth Anne Fessenden	director	1137 WEST AVENUE, RICHMOND VA 23220
Bowes Timothy Earl Joseph	officer: SVP & Pres. Ind & NA Aftmkt	2135 WEST MAPLE ROAD, TROY MI 48084
Ivor J Evans	director	MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084-7186
William R Newlin	director	C/O CARMELL THERAPEUTICS CORPORATION, 2403 SIDNEY STREET, SUITE 300, PITTSBURGH PA 15203
Timothy J. Heffron	officer: VP, HR & CIO	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Fazal F Merchant	director	2230 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Hannah S. Lim	officer: SVP, CLO & Corp Sec	2135 WEST MAPLE ROAD, TROY MI 48084
Joseph A. Plomin	officer: Pres., International	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Boise April Miller	officer: SVP, GC & Corp Sec	C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054