Travelzoo (FRA:TXM1) GF Value Rank : 9 (As of Jun. 09, 2024)

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What is Travelzoo GF Value Rank?

Travelzoo has the GF Value Rank of 9.

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 Travelzoo's GF Value Rank

For the Advertising Agencies subindustry, Travelzoo'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.

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

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

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

Travelzoo GF Value Rank Related Terms

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

Travelzoo (FRA:TXM1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Travelzoo (FRA:TXM1) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TZOO:USA TXM1:Germany

Address

590 Madison Avenue, 35th Floor, New York, NY, USA, 10022

Website

https://www.travelzoo.com

Travelzoo acts as a publisher of travel and entertainment offers. It operates in three segments. Travelzoo North America segment consists of operations in Canada and the U.S.; Travelzoo Europe segment consists of operations in France, Germany, Spain, and the U.K.; and Jack's Flight Club segment consists of subscription revenue from premium members to access and receive flight deals from Jack's Flight Club via email or via Android or Apple mobile applications. It derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on the company's media properties. Most of the company's revenue is derived from North America.

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