Eurofins Scientific SE (Eurofins Scientific SE) GF Value Rank : 10 (As of Apr. 27, 2024)

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What is Eurofins Scientific SE GF Value Rank?

Eurofins Scientific SE has the GF Value Rank of 10.

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 Eurofins Scientific SE's GF Value Rank

For the Diagnostics & Research subindustry, Eurofins Scientific 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.

Eurofins Scientific SE's GF Value Rank Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Eurofins Scientific SE's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Eurofins Scientific SE's GF Value Rank falls into.

Eurofins Scientific SE GF Value Rank Related Terms

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Eurofins Scientific SE (Eurofins Scientific SE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Eurofins Scientific SE (OTCPK:ERFSF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ERFp:UK 0MV5:UK ERF:France ESF0:Germany

Address

23 Val Fleuri, Luxembourg, LUX, L-1526

Website

https://www.eurofins.com

Eurofins, headquartered in Luxembourg, is a decentralized network of life sciences companies that provide various analytical tests and laboratory services. These include tests to evaluate the safety, identity, composition, authenticity, purity, origin, and traceability of various biological substances and products. Eurofins operates over 900 laboratories in 61 countries. Its revenue from Europe, North America, and the Rest of the World contribute approximately 50%, 40%, and 10% of total revenue respectively. Its main business activities are food and environmental testing, biopharmaceutical services, diagnostic services and products, and consumer and technology products testing, which contribute approximately 40%, 30%, 20%, and 10% respectively.