Boston Omaha (FRA:42S) GF Value Rank : 4 (As of May. 06, 2024)

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What is Boston Omaha GF Value Rank?

Boston Omaha 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 Boston Omaha's GF Value Rank

For the Advertising Agencies subindustry, Boston Omaha'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.

Boston Omaha's GF Value Rank Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Boston Omaha's GF Value Rank distribution charts can be found below:

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

Boston Omaha GF Value Rank Related Terms

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Boston Omaha (FRA:42S) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Boston Omaha Corp (FRA:42S) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BOC:USA

Address

1601 Dodge Street, Suite 3300, Omaha, NE, USA, 68102

Website

https://www.bostonomaha.com

Boston Omaha Corp is a US-based company which invests in real estate. Its operations include its ownership of multiple billboards in Florida, Georgia, Wisconsin, and Alabama and equity method investments in several real estate companies. The company operates three separate lines of business, outdoor billboard advertising, surety insurance and related brokerage activities, and broadband services. It also engages in investments in real estate management and related activities. The company generates the majority of the revenue from billboard rentals.

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