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Ultrapar Participacoes (Ultrapar Participacoes) GF Value Rank : 1 (As of Apr. 27, 2024)


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What is Ultrapar Participacoes GF Value Rank?

Ultrapar Participacoes 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 Ultrapar Participacoes's GF Value Rank

For the Oil & Gas Refining & Marketing subindustry, Ultrapar Participacoes'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.

Ultrapar Participacoes's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ultrapar Participacoes's GF Value Rank distribution charts can be found below:

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


Ultrapar Participacoes GF Value Rank Related Terms

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

Ultrapar Participacoes (Ultrapar Participacoes) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Ultrapar Participacoes SA (NYSE:UGP) » Definitions » GF Value Rank
Comparable Companies
BSP:CSAN3 BSP:RPMG3 NSE:RELIANCE MPC PSX VLO NSE:IOC OHEL:NESTE TPE:6505 XKAZ:KMGZ BOM:500547 TSE:5020 DINO IST:TUPRS TSE:5019 XKRX:096770 NSE:HINDPETRO SAU:2223 IEP HKSE:00135
Traded in Other Exchanges
UGPN:Mexico UGR:Germany UGPA3:Brazil UGP:Argentina
Address
Brigadeiro Luis Antonio Avenue, 1343, Sao Paulo, SP, BRA, 01317-910
Website
https://www.ultra.com.br
Ultrapar Participacoes SA engages in the investment of its own capital in services, commercial, industrial activities, through the subscription or acquisition of shares of other companies. The Company has three business segments: gas distribution, fuel distribution and storage. The gas distribution segment (Ultragaz) distributes LPG to residential, commercial, and industrial consumers, especially in the South, Southeast, and Northeast regions of Brazil. The fuel distribution segment operates the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities throughout all the Brazilian territory. The storage segment operates liquid bulk terminals, especially in the Southeast and Northeast regions of Brazil.