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Freightways Group (NZSE:FRW) GF Value Rank : 0 (As of Jun. 03, 2024)


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What is Freightways Group GF Value Rank?

Freightways Group 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.

Freightways Group GF Value Rank Related Terms

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Freightways Group (NZSE:FRW) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Freightways Group Ltd (NZSE:FRW) » Definitions » GF Value Rank
Comparable Companies
NZSE:MOV NZSE:MFT UPS FDX XTER:DHL OCSE:DSV XSWX:KNIN SZSE:002352 ZTO EXPD JBHT CHRW HKSE:01519 SHSE:600233 HKSE:02618 BOM:543994 LSTR TSE:9143 GXO SAU:4263
Traded in Other Exchanges
FRW:Australia
Address
32 Botha Road, Penrose, Auckland, NTL, NZL, DX CX10120
Website
https://www.freightways.co.nz
Freightways Ltd is a provider of express package services throughout New Zealand. The company is organized into three reportable segments: Express Package and Business Mail, Information Management and Corporate and others. The Express Package and Business Mail segment cover network courier, point-to-point courier, and postal services. Information management comprises secure paper-based and electronic business information management services. Corporate and other comprises corporate, financing, and property management services. Key revenue is derived from the Express Package and Business Mail divisions.