Thomson Reuters (TSX:TRI) GF Value Rank : 6 (As of Dec. 13, 2024)

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What is Thomson Reuters GF Value Rank?

Thomson Reuters has the GF Value Rank of 6.

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 Thomson Reuters's GF Value Rank

For the Specialty Business Services subindustry, Thomson Reuters'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.

Thomson Reuters's GF Value Rank Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Thomson Reuters's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Thomson Reuters's GF Value Rank falls into.

Thomson Reuters GF Value Rank Related Terms

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Thomson Reuters Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Thomson Reuters Corp (TSX:TRI) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TRI:USA 0Q89:UK TOC:Germany TOC:Germany TRI.PR.B.PFD:Canada

Address

19 Duncan Street, Suite 300, Toronto, ON, CAN, M5H 3H1

Website

https://www.thomsonreuters.com

Thomson Reuters is the result of the $17.6 billion megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Legal professionals is about 42% of the firm's revenue and 47% of the firm's adjusted EBITDA. Tax and accounting makes up about 20%-25% of the firm's revenue and EBITDA. Corporates, which consists of legal professionals and tax and accounting products sold to corporations, also makes up about 20%-25% of the firm's revenue and EBITDA. Thomson Reuters' smaller segments include its Reuters news business and global print business.

Executives

David Franklin Wong	Senior Officer
Karen L. Hirsh	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Ryan Kessler	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Heather Anne O'hagan	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Michael Keith Eastwood	Senior Officer
Jennifer Ruddick	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Kerry Hendrikx	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Kirsty Roth	Senior Officer
Sean Cannizzaro	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Linda Walker	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Peter J. Thomson	Director, Director or Senior Officer of 10% Security Holder
Jason Escaravage	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
David Larson	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Paul Fischer	Senior Officer
Kriti Sharma	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)