McGrath (ASX:MEA) GF Value Rank : 0 (As of May. 24, 2024)

View and export this data going back to 2015. Start your Free Trial

What is McGrath GF Value Rank?

McGrath has the GF Value Rank of 0.

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.

McGrath GF Value Rank Related Terms

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

McGrath (ASX:MEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » McGrath Ltd (ASX:MEA) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

55 Pyrmont Street, Pyrmont, NSW, AUS, 2009

Website

https://www.mcgrath.com.au

McGrath Ltd is a real estate company. It provides a range of services including residential property sales, property management, mortgage broking, auction services, and career training. It operates in the following segments: Company owned sales; Company owned property management; Franchise services; and Other. Geographically, all the business activities of the group function through Australia. The majority of its revenue gets derived from Company owned sales segment that comprises company-owned sales offices for which McGrath earns sales commission revenue including property marketing fees paid by vendor clients.

McGrath (ASX:MEA) Headlines

No Headlines