Paradox Interactive AB (OSTO:PDX) GF Value Rank : 8 (As of May. 27, 2024)

View and export this data going back to 2016. Start your Free Trial

What is Paradox Interactive AB GF Value Rank?

Paradox Interactive AB 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 Paradox Interactive AB's GF Value Rank

For the Electronic Gaming & Multimedia subindustry, Paradox Interactive AB'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.

Paradox Interactive AB's GF Value Rank Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Paradox Interactive AB's GF Value Rank falls into.

Paradox Interactive AB GF Value Rank Related Terms

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

Paradox Interactive AB (OSTO:PDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Paradox Interactive AB (OSTO:PDX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

PRXXF:USA 0GDU:UK ETA:Germany

Address

Magnus Ladulasgatan 4, Stockholm, SWE, SE-118 66

Website

https://www.paradoxinteractive.com

Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as g Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States.