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Townsquare Media (FRA:2T8) GF Value Rank : 6 (As of May. 14, 2024)


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What is Townsquare Media GF Value Rank?

Townsquare Media has the GF Value Rank of 6.

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 of Townsquare Media's GF Value Rank

For the Advertising Agencies subindustry, Townsquare Media'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.


Townsquare Media's GF Value Rank Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Townsquare Media's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Townsquare Media's GF Value Rank falls into.



Townsquare Media GF Value Rank Related Terms

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Townsquare Media (FRA:2T8) Business Description

Traded in Other Exchanges
Address
One Manhattanville Road, Suite 202, Purchase, New York, NY, USA, 10577
Townsquare Media Inc is a radio, digital media, entertainment, and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the United States. It has three segments which are Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. It earns the majority of the revenue from the Broadcasting Advertising segment. Its portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com, and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.

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