Nagarro SE (LTS:0AA3) GF Value Rank : 4 (As of Jun. 22, 2024)

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What is Nagarro SE GF Value Rank?

Nagarro SE has the GF Value Rank of 4.

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 Nagarro SE's GF Value Rank

For the Information Technology Services subindustry, Nagarro SE'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.

Nagarro SE's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Nagarro SE's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Nagarro SE's GF Value Rank falls into.

Nagarro SE GF Value Rank Related Terms

Thank you for viewing the detailed overview of Nagarro SE's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Nagarro SE (LTS:0AA3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nagarro SE (LTS:0AA3) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

NGRRF:USA NA9d:UK NA9:Germany

Address

Baierbrunner Street 15, Munich, BY, DEU, 81379

Website

https://www.nagarro.com

Nagarro SE is a digital engineering company. It offers application development and management, digital product engineering, artificial intelligence and machine learning, cloud solutions, digital marketing, IoT solutions, digital commerce solutions, managed services, and others. The company's geographical segment includes North America, Central Europe, Rest of Europe, and Rest of World. It derives a majority of its revenue from the Central Europe segment.

Nagarro SE (LTS:0AA3) Headlines

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