Mensch und Maschine Software SE (XTER:MUM) GF Value Rank : 6 (As of May. 20, 2024)

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What is Mensch und Maschine Software SE GF Value Rank?

Mensch und Maschine Software SE has the GF Value Rank of 6.

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 Mensch und Maschine Software SE's GF Value Rank

For the Software - Application subindustry, Mensch und Maschine Software SE'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.

Mensch und Maschine Software SE's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Mensch und Maschine Software SE's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Mensch und Maschine Software SE's GF Value Rank falls into.

Mensch und Maschine Software SE GF Value Rank Related Terms

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Mensch und Maschine Software SE (XTER:MUM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Mensch und Maschine Software SE (XTER:MUM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

MUM:Germany MUM:Germany MUM:Germany

Address

Argelsrieder Feld 5, Wessling, BY, DEU, 82234

Website

https://www.mum.de

Mensch und Maschine Software SE is a Germany-based company engaged in the provision of Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), Computer-Aided Engineering (CAE), Products Data Management, and Building Information Management solutions. The company's business model is based on two segments: Value Added Reselling (VAR) business and M+M software. The VAR business segment covers the direct selling of CAD software to end-users and associated services. The M+M software segment contains its own development of CAD/CAM/CAE/BIM software. The majority of the company's revenue is generated from Value Added Reselling business segment.

Executives

Dr. Rupprecht Von Bechtolsheim

Supervisory Board

Mensch und Maschine Software SE (XTER:MUM) Headlines

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