The Star Entertainment Group (The Star Entertainment Group) GF Value Rank

: 2 (As of Today)

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The Star Entertainment Group 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 Resorts & Casinos subindustry, The Star Entertainment 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.

The Star Entertainment Group GF Value Rank Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, The Star Entertainment Group's GF Value Rank distribution charts can be found below:

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

The Star Entertainment Group GF Value Rank Related Terms

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The Star Entertainment Group (The Star Entertainment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » The Star Entertainment Group Ltd (OTCPK:EHGRF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EE9:Germany SGR:Australia

Address

159 William Street, Level 3, Brisbane, QLD, AUS, 4000

Website

https://www.starentertainmentgroup.com.au

The Star Entertainment Group operates three hotel and casino complexes in Australia: The Star in Sydney (licence expiring in 2093, with electronic gaming machine exclusivity expiring in 2041), The Star Gold Coast (a perpetual licence), and Treasury Casino and Hotel in Brisbane (licence expiring in 2070). The Queen's Wharf development in Brisbane will have a 99-year licence on completion in 2024 (with a 25-year exclusivity period), replacing the Treasury Casino and Hotel, which will be repurposed into a hotel and retail site.

The Star Entertainment Group (The Star Entertainment Group) Headlines

From GuruFocus

The Star Entertainment Group and Konami Gaming Strengthen SYNKROS Casino Systems Partnership for Technological Advancement

By Business Wire • 09-12-2023