ESR Group (FRA:3K6) GF Value Rank : 2 (As of Dec. 11, 2024)

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What is ESR Group GF Value Rank?

ESR Group has the GF Value Rank of 2.

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 ESR Group's GF Value Rank

For the Real Estate Services subindustry, ESR Group'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.

ESR Group's GF Value Rank Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, ESR Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where ESR Group's GF Value Rank falls into.

ESR Group GF Value Rank Related Terms

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ESR Group Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

01821:Hong Kong 3K6:Germany

Address

Two Exchange Square, Suites 2905-06, 8 Connaught Place, Central, Hong Kong, HKG

Website

https://www.esr.com

ESR Group, or ESR, is one of the largest real asset managers in the Asia-Pacific, with USD 154 billion in total assets under management as of June 30, 2024. Most of its earnings are derived from fund management, where it manages underlying assets in investment vehicles such as a fund or REIT for fee income and a share of profits. It also develops and holds investment properties on its balance sheet for rental income and capital appreciation and will divest them into its managed funds and REITs over time to unlock and recycle the capital into other investment opportunities. In addition, to align its interest with its capital partners, ESR co-invests in the funds and REITs that it manages where it generates dividend income, pro rata earnings and value appreciation.

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