Verra Mobility (FRA:0YK) GF Value Rank : 3 (As of May. 27, 2024)

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What is Verra Mobility GF Value Rank?

Verra Mobility has the GF Value Rank of 3.

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 Verra Mobility's GF Value Rank

For the Infrastructure Operations subindustry, Verra Mobility'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.

Verra Mobility's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Verra Mobility's GF Value Rank distribution charts can be found below:

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

Verra Mobility GF Value Rank Related Terms

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

Verra Mobility (FRA:0YK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Verra Mobility Corp (FRA:0YK) » Definitions » GF Value Rank

Traded in Other Exchanges

VRRM:USA

Address

1150 North Alma School Road, Mesa, AZ, USA, 85201

Website

https://www.verramobility.com

Verra Mobility Corp provides smart transportation solutions. The company develops and uses technology and data intelligence to help make transportation safer and easier. It operates in three segments namely Commercial Services, Government Solutions, and Parking Solutions. It generates maximum revenue from the Commercial Services segment. The commercial Services segment delivers tolling and violation management services to rental car companies, commercial fleet vehicle owners, and violation issuing authorities.

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