Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.
Thus, the zones of discrimination were as such:
Good or high score = 6, 7, 8
Bad or low score = 0, 1
Farfetch has an G-score of 3.
The historical rank and industry rank for Farfetch's Mohanram G-Score or its related term are showing as below:
FTCHQ'
s Mohanram G-Score Range Over the Past 10 Years
Min: 3 Med: 3 Max: 3
Current: 3
During the past 8 years, the highest Piotroski G-score of Farfetch was 3. The lowest was 3. And the median was 3.
Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.
In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".
This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.
To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.
Farfetch Mohanram G-Score Related Terms
Farfetch Mohanram G-Score Historical Data
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The historical data trend for Farfetch's Mohanram G-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FTCHQ vs LQDT, FINR, OSTK: Mohanram G-Score Comparison
For the Internet Retail subindustry, Farfetch's Mohanram G-Score, along with its competitors' market caps and Mohanram G-Score 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.
Farfetch Mohanram G-Score vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Farfetch's Mohanram G-Score distribution charts can be found below:
* The bar in red indicates where Farfetch's Mohanram G-Score falls into.
The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.
Profitability
Question 1. Return on Assets (ROA)
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.
Score 1 if ROA > ROA Industry Median, 0 otherwise.
Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.
Question 8. Advertising Expenditure Intensity
Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.
Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.
Good or high score = 6, 7, 8
Bad or low score = 0, 1
Farfetch (FTCHQ) has a Mohanram G-Score of 3 as of Jun. 2023. G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. View historical data on Farfetch and its competitors. This is near median its historical median of 3.00. Over the past decade, Farfetch's Mohanram G-Score has ranged from 3.00 to 3.00.
Is Farfetch's Mohanram G-Score too high?
Farfetch's current Mohanram G-Score of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 3.00. Overall, Farfetch has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Farfetch's Mohanram G-Score compare to LQDT and FINR?
Farfetch's Mohanram G-Score of 3 can be compared against companies in the Retail - Cyclical industry. Historically, Farfetch's own Mohanram G-Score has ranged from 3.00 to 3.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Mohanram G-Score for a Retail - Cyclical company?
A good Mohanram G-Score depends on the Retail - Cyclical industry context. However, Mohanram G-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Mohanram G-Score mean?
A high Mohanram G-Score can signal that a stock is expensive relative to its fundamentals. G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. View historical data on Farfetch and its competitors. Farfetch's current Mohanram G-Score is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farfetch stock overvalued right now?
Farfetch (FTCHQ) has a current Mohanram G-Score of 3. The current Mohanram G-Score is 3, which is near median its 10-year median of 3.00. Farfetch's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Mohanram G-Score calculated?
Mohanram G-Score is calculated from a company's financial statements. For Farfetch (FTCHQ), the current Mohanram G-Score is 3 as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Farfetch Ltd is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.
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