Signet Jewelers (FRA:SZ2) GF Value Rank : 3 (As of May. 27, 2024)

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What is Signet Jewelers GF Value Rank?

Signet Jewelers 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 Signet Jewelers's GF Value Rank

For the Luxury Goods subindustry, Signet Jewelers'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.

Signet Jewelers's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Signet Jewelers's GF Value Rank distribution charts can be found below:

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

Signet Jewelers GF Value Rank Related Terms

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

Signet Jewelers (FRA:SZ2) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Signet Jewelers Ltd (FRA:SZ2) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SIG:USA

Address

2 Church Street, Clarendon House, Hamilton, BMU, HM11

Website

https://www.signetjewelers.com

Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches and others. The bridal category includes engagement, wedding and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue.

Signet Jewelers (FRA:SZ2) Headlines

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