Grupo Casas Bahia (BSP:BHIA3) GF Value Rank : 2 (As of Apr. 28, 2024)

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What is Grupo Casas Bahia GF Value Rank?

Grupo Casas Bahia 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 Grupo Casas Bahia's GF Value Rank

For the Specialty Retail subindustry, Grupo Casas Bahia'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.

Grupo Casas Bahia's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Casas Bahia's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Grupo Casas Bahia's GF Value Rank falls into.

Grupo Casas Bahia GF Value Rank Related Terms

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Grupo Casas Bahia (BSP:BHIA3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Grupo Casas Bahia SA (BSP:BHIA3) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

VIAYY:USA

Address

Eldorado Business Tower Avenue, 8501 – 23rd floor, Pinheiros, Sao Caetano do Sul, SP, BRA, CEP 05425-070

Website

https://www.via.com.br

Grupo Casas Bahia SA formerly Via SA is a Brazil-based retailer that is principally engaged in the sale of consumer electronics, home appliances, mobile phones, and furniture. The company also provides credit card services to clients. The company operates through two traditional retail brand chains in Brazil; Casas Bahia and Pontofrio. Over two-thirds of the company's stores are under the Casas Bahia name, and all of its stores are located in Brazil. In addition to physical stores, the company also sells products through its websites of CNova.

Grupo Casas Bahia (BSP:BHIA3) Headlines

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