Gym Group (The) (Gym Group (The)) GF Value Rank

: 4 (As of Today)

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Gym Group (The) has the GF Value Rank of 4.

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 Leisure subindustry, Gym Group (The)'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.

Gym Group (The) GF Value Rank Distribution

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

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

Gym Group (The) GF Value Rank Related Terms

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Gym Group (The) (Gym Group (The)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Gym Group (The) PLC (OTCPK:GYYMF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

GYMl:UK GYM:UK 4GY:Germany

Address

12-16 Addiscombe Road, 5th Floor, OneCroydon, Croydon, GBR, CR0 0XT

Website

https://www.tggplc.com

Gym Group (The) PLC provides low-cost, 24/7 health and fitness facilities across the United Kingdom. The company offers flexible no-contract gym memberships, and it also ensures that all its sites have easy-access parking or are close to transportation hubs. The facilities include a wide variety of equipment as well to deliver value-for-the-money for its members. It generates the majority of its revenue from Membership income.

Gym Group (The) (Gym Group (The)) Headlines

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