Sears Canada (Sears Canada) GF Value Rank : 0 (As of Apr. 27, 2024)

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What is Sears Canada GF Value Rank?

Sears Canada has the GF Value Rank of 0.

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.

Sears Canada GF Value Rank Related Terms

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Sears Canada (Sears Canada) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sears Canada Inc (OTCPK:SRSCQ) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3

Website

http://www.sears.ca

Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.

Sears Canada (Sears Canada) Headlines

From GuruFocus

Bruce Berkowitz Comments on Sears Canada

By Holly LaFon Holly LaFon • 08-08-2017

Bruce Berkowitz Comments on Sears Canada

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Bruce Berkowitz Increases 2 Holdings, Reduces AIG in Q2

By Holly LaFon Holly LaFon • 07-31-2015

Fairholme Fund Increases Stakes During 1Q2015

By Amber Harris Amber Harris • 04-29-2015

Berkowitz's Fairholme Fund Adds Stake In Struggling Sears Canada

By J. Lukas Neely – EndlessRise J. Lukas Neely • 11-11-2014

Fairholme's Bruce Berkowitz Announces New Holding Sears Canada and Increase to Leucadia

By Holly LaFon Holly LaFon • 02-01-2013

Edward Lampert's Recent Buys

By Tiziano Frateschi Tiziano Frateschi • 03-19-2015