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Codon AG (STU:CNW) GF Value Rank : 2 (As of May. 10, 2024)


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What is Codon AG GF Value Rank?

Codon AG has the GF Value Rank of 2.

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 Codon AG's GF Value Rank

For the Biotechnology subindustry, Codon AG'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.

Codon AG's GF Value Rank Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Codon AG's GF Value Rank distribution charts can be found below:

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


Codon AG GF Value Rank Related Terms

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

Codon AG (STU:CNW) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Codon AG (STU:CNW) » Definitions » GF Value Rank
Comparable Companies
XTER:T3T1 XTER:PDA XTER:UMDK FRA:TIS STU:QS6A OCSE:NOVO B VRTX REGN ASX:CSL SGEN MRNA XKRX:207940 XBRU:ARGX BNTX HKSE:02269 OCSE:GMAB ALNY BGNE XBRU:UCB BMRN
Traded in Other Exchanges
N/A
Address
Warthestrasse 21, Teltow, DEU, 14513
Website
http://www.codon.de
Codon AG develops, produces and distributes autologous cell therapies for the minimally invasive repair of cartilage defects. The product being marketed is a cell therapy product for the minimally invasive treatment of cartilage damage in the knee joint that uses only the patient's own cartilage cells (autologous chondrocytes). CODON's method is currently used in over 200 clinics in Germany and more than 14,000 patients have already been treated.