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Charlottes Web Holdings (TSX:CWEB) GF Value Rank : 0 (As of Jun. 06, 2024)


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What is Charlottes Web Holdings GF Value Rank?

Charlottes Web Holdings has the GF Value Rank of 0.

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.

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Charlottes Web Holdings (TSX:CWEB) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Charlottes Web Holdings Inc (TSX:CWEB) » Definitions » GF Value Rank
Comparable Companies
TSX:MDP XCNQ:HUGE TSXV:DB XCNQ:MMEN XCNQ:CXXI TSXV:ZYUS TSX:AVNT XCNQ:ACRG.A.U XCNQ:GDNS TSXV:LSL ZTS XTER:MRK TSE:4502 LSE:HLN NSE:SUNPHARMA TSE:4523 TSE:4507 SZSE:000538 XSWX:SDZ HKSE:03692
Traded in Other Exchanges
CWBHF:USA 6CW:Germany
Address
700 Tech Court, Louisville, CO, USA, 80027
Website
https://www.charlottesweb.com
Charlottes Web Holdings Inc is engaged in the production and distribution of hemp-based cannabidiol (CBD) wellness products. Its product categories include ingestible products (tinctures, capsules, and gummies), topicals, and pet products. The company distributes its products through an e-commerce website, third-party e-commerce websites, select distributors, health practitioners, and a variety of brick-and-mortar specialty retailers.
Executives
William Morachnick Senior Officer

Charlottes Web Holdings (TSX:CWEB) Headlines

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