Veste Estilo (BSP:VSTE) GF Value Rank : 1 (As of Apr. 26, 2024)

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What is Veste Estilo GF Value Rank?

Veste Estilo 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 Veste Estilo's GF Value Rank

For the Apparel Retail subindustry, Veste Estilo'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.

Veste Estilo's GF Value Rank Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Veste Estilo's GF Value Rank falls into.

Veste Estilo GF Value Rank Related Terms

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

Veste Estilo (BSP:VSTE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Veste SA Estilo (BSP:VSTE) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Othão, 405, Sao Paulo, SP, BRA, 05313-020

Website

https://www.veste.com

Veste SA Estilo is engaged in apparel industry retailers and high-end accessories in Brazil. The Company's main objectives are: development, exploration of the industry, trade, import and export of clothing and clothing accessories and trading in decorative, hygiene and cosmetic objects, among others. It produces clothes, accessories, footwear, and articles for the home, always in line with contemporary lifestyle, bringing joy, elegance, and well-being to customers under its brands Le Lis, Dudalina, john john, Stew, and Individual. The company focuses on designing, developing, manufacturing, and trading apparel and accessories for women and men.

Veste Estilo (BSP:VSTE) Headlines

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