Fawaz Abdulaziz AlHokair Co (SAU:4240) GF Value Rank : 2 (As of Jun. 21, 2024)

View and export this data going back to 2006. Start your Free Trial

What is Fawaz Abdulaziz AlHokair Co GF Value Rank?

Fawaz Abdulaziz AlHokair Co 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 Fawaz Abdulaziz AlHokair Co's GF Value Rank

For the Apparel Retail subindustry, Fawaz Abdulaziz AlHokair Co'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.

Fawaz Abdulaziz AlHokair Co's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Fawaz Abdulaziz AlHokair Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Fawaz Abdulaziz AlHokair Co's GF Value Rank falls into.

Fawaz Abdulaziz AlHokair Co GF Value Rank Related Terms

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

Fawaz Abdulaziz AlHokair Co (SAU:4240) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Fawaz Abdulaziz AlHokair Co (SAU:4240) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Prince Turki Ibn Abdulaziz Al Awwal Road, P.O. Box 4925, U-Walk, A3 Building, 1st Floor, University Walk Beside Muvi Cinema, Riyadh, SAU, 12373

Website

https://www.fahretail.com

Fawaz Abdulaziz AlHokair Co is a Saudi Joint Stock company. The company engages in wholesale and retail trading of ready-made cloth for men, women and children, shoes, textiles, house and office furniture, perfumes, natural cosmetics, ornaments and beauty materials and their compounds and traditional jewelry. Its operating segment includes Fashion retail; Indoor entertainment and Food and Beverages. The company generates maximum revenue from the Fashion retail segment. Geographically, it derives a majority of its revenue from the Kingdom of Saudi Arabia.

Fawaz Abdulaziz AlHokair Co (SAU:4240) Headlines

No Headlines