Axfood AB (Axfood AB) GF Value Rank : 7 (As of May. 02, 2024)

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What is Axfood AB GF Value Rank?

Axfood AB has the GF Value Rank of 7.

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 Axfood AB's GF Value Rank

For the Grocery Stores subindustry, Axfood AB'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.

Axfood AB's GF Value Rank Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Axfood AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Axfood AB's GF Value Rank falls into.

Axfood AB GF Value Rank Related Terms

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Axfood AB (Axfood AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Axfood AB (OTCPK:AXFOF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AXFOY:USA AXFO:Sweden AXFOs:UK 0R6R:UK AXL1:Germany

Address

Solnavagen 4, Stockholm, SWE, 113 65

Website

https://www.axfood.se

Axfood AB operates food retail and wholesale businesses in Sweden. Its operating segments include Willys, Hemkop, Dagab, and Snabbgross. The Willys segment operates two discount grocery chains: Willys and Eurocash. Willys is Sweden's primary discount market chain, while Eurocash serves mainly the Norwegian-Swedish border. Hemkop offers a wide range of fresh products for meal solutions. Dagab is engaged in the wholesale purchasing and logistics business. Narlivs operates within this segment as a wholesaler serving independent grocers and convenience retailers. This segment contributes to the majority of the company's revenue. Snabbgross is a restaurant wholesaler, catering primarily to cafes, fast-food establishments, and high-end restaurants.

Axfood AB (Axfood AB) Headlines

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