Zalando SE (LTS:0QXN) GF Value Rank : 9 (As of Apr. 25, 2024)

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What is Zalando SE GF Value Rank?

Zalando SE has the GF Value Rank of 9.

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 Zalando SE's GF Value Rank

For the Internet Retail subindustry, Zalando SE'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.

Zalando SE's GF Value Rank Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Zalando SE's GF Value Rank falls into.

Zalando SE GF Value Rank Related Terms

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Zalando SE (LTS:0QXN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Zalando SE (LTS:0QXN) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ZLNDY:USA ZLDSF:USA ZAL:Poland ZAL:Mexico 1ZAL:Italy ZALd:UK ZAL:Germany ZAL:Austria

Address

Valeska-Gert-Strabe 5, Berlin, DEU, 10243

Website

https://corporate.zalando.com

Zalando, founded in 2008, is Europe's biggest pure-play online fashion platform. Zalando is present in 25 European countries, and its major market is the DACH region, comprising Germany, Austria, and Switzerland, which accounts for around 40% of revenue. The company commands 4% of European apparel sales and 12% market share in European online apparel sales. It has 12 fulfilment centers and presents over 7,000 brands on its platform. In 2022, Zalando had over 50 million active users (more than 10% of the population in countries where the firm has a presence) and over 7 billion site visits.

Zalando SE (LTS:0QXN) Headlines

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