Copart (FRA:CO6) GF Value Rank : 5 (As of May. 02, 2024)

View and export this data going back to 1994. Start your Free Trial

What is Copart GF Value Rank?

Copart has the GF Value Rank of 5.

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 Copart's GF Value Rank

For the Specialty Business Services subindustry, Copart'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.

Copart's GF Value Rank Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Copart's GF Value Rank distribution charts can be found below:

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

Copart GF Value Rank Related Terms

Thank you for viewing the detailed overview of Copart's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Copart (FRA:CO6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Copart Inc (FRA:CO6) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CPRT:USA CPRT:Mexico C1PR34:Brazil

Address

14185 Dallas Parkway, Suite 300, Dallas, TX, USA, 75254

Website

https://www.copart.com

Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart's vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle's final selling price.

Copart (FRA:CO6) Headlines

No Headlines