The RealReal (The RealReal) GF Value Rank

: 3 (As of Today)

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The RealReal has the GF Value Rank of 3.

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 (The RealReal) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The RealReal Inc (NAS:REAL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

6RR:Germany

Address

55 Francisco Street, Suite 400, San Francisco, CA, USA, 94133

Website

https://www.therealreal.com

The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 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 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.

Executives

John E Koryl	director, officer: Chief Executive Officer	55 FRANCISCO STREET 4TH FLOOR, SAN FRANCISCO CA 94133
Levesque Rati Sahi	officer: Chief Operating Officer	55 FRANCISCO, SAN FRANCISCO CA 94133
Robert J Krolik	director	873 SANTA CRUZ AVE, SUITE 206, MENLO PARK CA 94025
Luke Thomas Friang	officer: Chief Product & Tech Officer	20614 NE 38TH STREET, SAMMAMISH WA 98074
Todd A Suko	officer: Chief Legal Officer and Secy.	7251 WEST 4TH STREET, GREELEY CO 80634
Steve Ming Lo	officer: VP, Corporate Controller	55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Robert K. Julian	officer: Chief Financial Officer	C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047
James R. Miller	director	4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Julie Wainwright	director, officer: CEO, President and Chairperson	C/O THE REALREAL, INC., 55 FRANCISCO STREET, SUITE 600, SAN FRANCISCO CA 94133
Arnon Katz	officer: Chief Product & Technology Off	3331 VERDUN AVE, SAN MATEO CA 94403
Matt Gustke	officer: Chief Financial Officer	55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Karen Katz	director
Fredrik Bjork	officer: Chief Technology Officer	55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Baird Gilbert L. Iii	director	5075 S. SYRACUSE ST., DENVER CO 80237
Michael Andrew Kumin	director	C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116