VEREIT (FRA:50AA) GF Value Rank : 0 (As of May. 21, 2024)

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What is VEREIT GF Value Rank?

VEREIT 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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VEREIT (FRA:50AA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » VEREIT Inc (FRA:50AA) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

2325 East Camelback Road, 9th Floor, Phoenix, AZ, USA, 85016

Website

https://www.vereit.com

VEREIT Inc is a real estate investment trust primarily involved in the ownership of property located in the U.S. and Canada. VEREIT organizes its operations through the Real Estate Investment segment and the investment management segment. The company derives the vast majority of its income from its Real Estate Investment division in the form of rental income from long-term leases. This business unit owns and manages a real estate portfolio that is fairly evenly diversified between retail, restaurant, office, and industrial properties. A sizable amount of the company's total rental income is derived from customers in the casual dining restaurant and manufacturing industries.

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