Equity Commonwealth (Equity Commonwealth) GF Value Rank : 9 (As of Apr. 25, 2024)

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What is Equity Commonwealth GF Value Rank?

Equity Commonwealth 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 Equity Commonwealth's GF Value Rank

For the REIT - Office subindustry, Equity Commonwealth'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.

Equity Commonwealth's GF Value Rank Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Equity Commonwealth's GF Value Rank distribution charts can be found below:

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

Equity Commonwealth GF Value Rank Related Terms

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Equity Commonwealth (Equity Commonwealth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Equity Commonwealth (NYSE:EQCpD.PFD) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EQC:USA

Address

Two North Riverside Plaza, Suite 2100, Chicago, IL, USA, 60606

Website

https://www.eqcre.com

Equity Commonwealth is a real estate investment trust engaged in the acquisition, ownership, and operation of primarily office buildings located throughout the United States. The vast majority of the company's real estate portfolio comprises office assets. These properties are fairly evenly dispersed between many of America's major urban markets, notably Washington, Austin, and Denver. Equity Commonwealth derives the vast majority of its income in the form of rental revenue from tenants occupying its offices. The company's largest tenants in terms of revenue generation include a variety of hiking, household goods, publishing, and financial firms.