American Hotelome Properties REIT LP (TSX:HOT.U) GF Value Rank : 2 (As of May. 01, 2024)

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What is American Hotelome Properties REIT LP GF Value Rank?

American Hotelome Properties REIT LP 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 American Hotelome Properties REIT LP's GF Value Rank

For the REIT - Hotel & Motel subindustry, American Hotelome Properties REIT LP'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.

American Hotelome Properties REIT LP's GF Value Rank Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Hotelome Properties REIT LP's GF Value Rank distribution charts can be found below:

* The bar in red indicates where American Hotelome Properties REIT LP's GF Value Rank falls into.

American Hotelome Properties REIT LP GF Value Rank Related Terms

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American Hotelome Properties REIT LP (TSX:HOT.U) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Hotel Income Properties REIT LP (TSX:HOT.U) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AHOTF:USA HOT.UN:Canada

Address

800 - 925 West Georgia Street, Vancouver, BC, CAN, V6C 3L2

Website

https://www.ahipreit.com

American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties. The company's primary business is owning Premium Branded hotels, which have franchise agreements with international hotel brands including Marriott, Hilton, and IHG. It generates revenue from the room, food, beverage, and other revenue. The other revenue is comprised of conference room rentals, parking revenues, and other incidental income.

American Hotelome Properties REIT LP (TSX:HOT.U) Headlines

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