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Steinhoff International Holdings NV (JSE:SNH) GF Value Rank : 0 (As of Apr. 27, 2024)


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What is Steinhoff International Holdings NV GF Value Rank?

Steinhoff International Holdings NV has the GF Value Rank of 0.

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.


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Steinhoff International Holdings NV (JSE:SNH) Business Description

Traded in Other Exchanges
N/A
Address
Cnr Adam Tas and Devon Valley Road, Building B2, Vineyard Office Park, Stellenbosch, WC, ZAF, 7600
Steinhoff International Holdings NV is a global holding company with investments in retail businesses in Africa, Australasia, Europe, the United Kingdom, and the United States. The company's four business segments include Pepco Group, Greenlit Brands, Pepkor Holdings, and Group services. The majority of the revenue comes from both Pepco Group and Pepkor Holdings. Pepco Group consists of the general merchandise retail business of Pepco and Poundland. Pepkor Holdings includes retail chains predominantly selling clothing, footwear, textiles, cell phones, airtime, and fast-moving consumer goods, with its revenue mainly derived from South Africa. The holding company operates globally, with the majority of sales coming from Africa and Europe.

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