Nexstar Media Group (FRA:NXZ) GF Value Rank : 9 (As of Apr. 30, 2024)

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What is Nexstar Media Group GF Value Rank?

Nexstar Media Group has the GF Value Rank of 9.

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 Nexstar Media Group's GF Value Rank

For the Entertainment subindustry, Nexstar Media Group'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.

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

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

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

Nexstar Media Group GF Value Rank Related Terms

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Nexstar Media Group (FRA:NXZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Nexstar Media Group Inc (FRA:NXZ) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

NXST:USA

Address

545 E. John Carpenter Freeway, Suite 700, Irving, TX, USA, 75062

Website

https://www.nexstar.tv

Nexstar is the largest television station owner/operator in the United States, with 200 stations in 116 markets. Of its 200 full-power stations, 155 are affiliated with the four national broadcasters: CBS, Fox, NBC, and ABC. The 2019 merger with Tribune made Nexstar the top broadcast affiliate for both Fox and CBS as well as the number-two partner for NBC and number three for ABC. The firm has networks in 12 of the top 20 television markets and reaches over 68% of U.S. TV households. Nexstar also owns NewsNation (formerly WGN), a nationwide pay-television network, 75% of The CW, and a 31% stake in Food Network and Cooking Channel.

Nexstar Media Group (FRA:NXZ) Headlines

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