Coffee Day Enterprises (NSE:COFFEEDAY) GF Value Rank : 2 (As of Dec. 11, 2024)

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What is Coffee Day Enterprises GF Value Rank?

Coffee Day Enterprises 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 Coffee Day Enterprises's GF Value Rank

For the Restaurants subindustry, Coffee Day Enterprises'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.

Coffee Day Enterprises's GF Value Rank Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Coffee Day Enterprises's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Coffee Day Enterprises's GF Value Rank falls into.

Coffee Day Enterprises GF Value Rank Related Terms

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Coffee Day Enterprises Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Coffee Day Enterprises Ltd (NSE:COFFEEDAY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

539436:India

Address

No. 165, R.V. Road, Near Minerva Circle, Bangalore, KA, IND, 560004

Website

https://www.coffeeday.com

Coffee Day Enterprises Ltd is engaged in a coffee business which includes procuring, processing, and roasting of coffee beans to retailing of coffee products across various formats. The company is also engaged in the logistics business providing services as port handling, road and rail, logistics, container freight stations, and mining to provide integrated logistics solutions. It operates through the following business segments: Coffee and related business, Integrated multimodal logistics, Hospitality Services, and Investment and other corporate operations. The majority of the company's revenue comes from its Coffee-related business. The vast majority of its revenue is generated within India.

Coffee Day Enterprises Headlines

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