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The RealReal GF Value Rank

: 2 (As of Today)
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The RealReal 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

For the Luxury Goods subindustry, The RealReal'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.

   

The RealReal GF Value Rank Distribution

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

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



The RealReal GF Value Rank Related Terms

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


The RealReal Business Description

The RealReal logo
Traded in Other Exchanges
Address
55 Francisco Street, Suite 600, San Francisco, CA, USA, 94133
The RealReal is the largest luxury resale platform in the U.S., generating $1.48 billion in 2021 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 25% of gross merchandise value (or 35% of net merchandise value, which excludes returns, cancellations, and first-party sales).
Executives
Julian Robert K. officer: Chief Financial Officer C/O SPORTSMAN'S WAREHOUSE 7035 SOUTH HIGH TECH DRIVE MIDVALE UT 84047
Katz Karen director
Katz Arnon officer: Chief Product & Technology Off 3331 VERDUN AVE SAN MATEO CA 94403
Grede Emma director C/O 55 FRANCISCO STREET SAN FRANCISCO CA 94133
Kumin Michael Andrew director C/O GREAT HILL PARTNERS, L.P. 200 CLARENDON STREET, 29TH FLOOR BOSTON MA 02116
Baird Gilbert L. Iii director 5075 S. SYRACUSE ST. DENVER CO 80237
Great Hill Partners Gp V, L.p. 10 percent owner 200 CLARENDON STREET 29TH FLOOR BOSTON MA 02116
Ghp V, Llc 10 percent owner C/O GREAT HILL PARTNERS, L.P. 200 CLARENDON STREET, 29TH FLOOR BOSTON MA 02116
Great Hill Equity Partners V, L.p. 10 percent owner C/O GREAT HILL PARTNERS 200 CLARENDON STREET, 29TH FLOOR BOSTON MA 02116
Great Hill Investors Llc 10 percent owner 200 CLARENDON STREET 29TH FLOOR BOSTON MA 02116
Coleman Caretha director 26855 ORTEGA DRIVE LOS ALTOS HILLS CA 94022
Melton Carol A director 4445 WILLARD AVENUE, SUITE 400 CHEVY CHASE MD 20815
Suko Todd A officer: Chief Legal Officer and Secy. 7251 WEST 4TH STREET GREELEY CO 80634
Ibrahim Maha Saleh director 2765 SAND HILL ROAD MENLO PARK CA 94025
Lo Steve Ming officer: VP, Corporate Controller 55 FRANCISCO ST, 6TH FLOOR SAN FRANCISCO CA 94133

The RealReal Headlines

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