Telefonica Deutschland Holding AG (XTER:O2D) GF Value Rank

: 7 (As of Today)

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Telefonica Deutschland Holding AG 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 Telecom Services subindustry, Telefonica Deutschland Holding AG'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.

Telefonica Deutschland Holding AG GF Value Rank Distribution

For the Telecommunication Services industry and Communication Services sector, Telefonica Deutschland Holding AG's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Telefonica Deutschland Holding AG's GF Value Rank falls into.

Telefonica Deutschland Holding AG GF Value Rank Related Terms

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Telefonica Deutschland Holding AG (XTER:O2D) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica Deutschland Holding AG (XTER:O2D) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TELDF:USA 0QAL:UK O2D:Austria

Address

Georg-Brauchle-Ring 50, Munich, BY, DEU, 80992

Website

http://www.telefonica.de

Telefonica Deutschland O2 is the German subsidiary of Telefonica, which owns 69% of the company's stock. Following the E-Plus acquisition in 2014, O2 became one of the largest wireless operators in Germany. O2 is required to offer competitors, such as 1&1 Drillisch, access to its network as a condition of the regulator's approval of its merger with E-Plus.The firm does not have its own fixed-line network but resells capacity from Deutsche Telekom and Vodafone.

Executives

Markus Haas	Board of Directors
Yelamate Mallikarjuna Rao	Board of Directors

Telefonica Deutschland Holding AG (XTER:O2D) Headlines

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