Alexandria Real Estate Equities (FRA:A6W) GF Value Rank : 8 (As of Dec. 12, 2024)

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What is Alexandria Real Estate Equities GF Value Rank?

Alexandria Real Estate Equities has the GF Value Rank of 8.

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 Alexandria Real Estate Equities's GF Value Rank

For the REIT - Office subindustry, Alexandria Real Estate Equities'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.

Alexandria Real Estate Equities's GF Value Rank Distribution in the REITs Industry

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

* The bar in red indicates where Alexandria Real Estate Equities's GF Value Rank falls into.

Alexandria Real Estate Equities GF Value Rank Related Terms

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Alexandria Real Estate Equities Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Alexandria Real Estate Equities Inc (FRA:A6W) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ARE:USA 0HCH:UK A1RE34:Brazil

Address

26 North Euclid Avenue, Pasadena, CA, USA, 91101

Website

https://www.are.com

Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, agtech, and technology campuses that provide tenants with highly dynamic and collaborative environments. Alexandria also provides strategic capital to transformative life science, agtech, and technology companies through venture capital platform.

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