Hoteles City ExpressB de CV (Hoteles City ExpressB de CV) GF Value Rank : 2 (As of Jun. 07, 2024)

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What is Hoteles City ExpressB de CV GF Value Rank?

Hoteles City ExpressB de CV 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 Hoteles City ExpressB de CV's GF Value Rank

For the Lodging subindustry, Hoteles City ExpressB de CV'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.

Hoteles City ExpressB de CV's GF Value Rank Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hoteles City ExpressB de CV's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hoteles City ExpressB de CV's GF Value Rank falls into.

Hoteles City ExpressB de CV GF Value Rank Related Terms

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Hoteles City ExpressB de CV (Hoteles City ExpressB de CV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Hoteles City Express SAB de CV (OTCPK:HOCXF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HCITY:Mexico

Address

Juan Salvador Agraz No. 69, Col. Santa Fe Cuajimalpa, Del. Cuajimalpa de Morelos, Mexico, MEX, 05300

Website

http://www.hotelescity.com

Hoteles City Express SAB de CV together with its subsidiaries is engaged in the ownership, operation, and management of hotels using the brand names Hoteles City Express, City Suites and City Junior. The company's segments include Hotel Operation and Hotel Management. The company works as an alternative for business travelers, and the option for anyone looking to increase the value of an investment through a modern, hotel franchise and also, are the working towards the economy business travel segment.