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Sprout Social (Sprout Social) GF Value Rank : 8 (As of Apr. 26, 2024)


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What is Sprout Social GF Value Rank?

Sprout Social has the GF Value Rank of 8.

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 Sprout Social's GF Value Rank

For the Software - Application subindustry, Sprout Social'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.


Sprout Social's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Sprout Social's GF Value Rank distribution charts can be found below:

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



Sprout Social GF Value Rank Related Terms

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


Sprout Social (Sprout Social) Business Description

Traded in Other Exchanges
Address
131 South Dearborn Street, Suite 700, Chicago, IL, USA, 60603
Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.
Executives
Justyn Russell Howard director, 10 percent owner, officer: Chairman and CEO C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Ryan Paul Barretto officer: President C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN AVENUE, SUITE 700, CHICAGO IL 60603
Rankin Aaron Edward Frederick director, 10 percent owner, officer: Chief Technology Officer C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Preto Joseph Del officer: CFO and Treasurer 600 WEST CHICAGO AVENUE, SUITE 850, CHICAGO IL 60610
Karen Walker director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Raina Moskowitz director 117 ADAMS STREET, C/O ETSY,INC., BROOKLYN NY 11201
William Thomas Stanley director 131 S DEARBORN ST, STE 700, CHICAGO IL 60603
Steven A Collins director 20 N. MERIDIAN STREET, SUITE 200, INDIANAPOLIS IN 46204
Jamie Cannon Gilpin officer: Chief Marketing Officer C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Jason Kreuziger director C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Gs Fund Holdings, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282
New Enterprise Associates 13 Lp 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Mbd Advisors, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Bridge Street Opportunity Advisors, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282