Sydney Airport (ASX:SYD) GF Value Rank : 1 (As of May. 12, 2024)

View and export this data going back to 2002. Start your Free Trial

What is Sydney Airport GF Value Rank?

Sydney Airport has the GF Value Rank of 1.

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 Sydney Airport's GF Value Rank

For the Airports & Air Services subindustry, Sydney Airport'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.

Sydney Airport's GF Value Rank Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Sydney Airport's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sydney Airport's GF Value Rank falls into.

Sydney Airport GF Value Rank Related Terms

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

Sydney Airport (ASX:SYD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Sydney Airport (ASX:SYD) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Arrivals Court, Sydney International Airport, Sydney, NSW, AUS, 2020

Website

http://www.sydneyairport.com.au

Sydney Airport has a lease to operate the facility until 2097. As Australia's busiest airport, it connects close to 100 international and domestic destinations, and handled more than 40 million passenger movements annually until COVID-19 border restrictions in 2020. Regulation is light, with airports setting charges and terms with airlines, and the regulator monitoring the aeronautical and car park operations to ensure reasonable pricing and service. Retail and property operations are free from regulatory oversight, though political and commercial pressure limits Sydney Airport from overly flexing its pricing muscle, particularly as the government owns the rival Western Sydney Airport, set to open in 2026.

Sydney Airport (ASX:SYD) Headlines

No Headlines