Compass Group (Compass Group) GF Value Rank

: 7 (As of Today)

View and export this data going back to . Start your Free Trial

Compass Group has the GF Value Rank of 7.

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 Restaurants subindustry, Compass Group'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.

Compass Group GF Value Rank Distribution

For the Restaurants industry and Consumer Cyclical sector, Compass Group's GF Value Rank distribution charts can be found below:

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

Compass Group GF Value Rank Related Terms

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

Compass Group (Compass Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Compass Group PLC (OTCPK:CMPGY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CMPGF:USA CPG:Mexico CPGl:UK CPG:UK XGR2:Germany XGR2:Germany XGR2:Germany

Address

Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ

Website

https://www.compass-group.com

Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 25 billion. Compass Group's model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.

Compass Group (Compass Group) Headlines

From GuruFocus

David Herro Comments on Compass Group

By Sydnee Gatewood Sydnee Gatewood • 07-09-2020

Compass Group PLC's Dividend Analysis

By GuruFocus Research • 01-17-2024

UK Quality: Compass Group - Good Navigation

By The City Letter • 10-24-2021

4 UK Hospitality Companies to Consider for the Rest of the Summer

By James Li • 07-28-2021

David Herro and Bill Nygren Comment on Compass Group

By Sydnee Gatewood Sydnee Gatewood • 10-12-2020

Compass Group PLC Stock Is Believed To Be Modestly Overvalued

By GF Value GF Value • 04-04-2021