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Edenred SE (XPAR:EDEN) GF Value Rank : 10 (As of Apr. 26, 2024)


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What is Edenred SE GF Value Rank?

Edenred SE has the GF Value Rank of 10.

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 Edenred SE's GF Value Rank

For the Credit Services subindustry, Edenred SE'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.

Edenred SE's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Edenred SE's GF Value Rank distribution charts can be found below:

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


Edenred SE GF Value Rank Related Terms

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Edenred SE (XPAR:EDEN) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Edenred SE (XPAR:EDEN) » Definitions » GF Value Rank
Comparable Companies
ODC NEU EMN CBT WTTR ECVT CMT WLK ASH SXT V MA AXP PYPL BOM:500034 COF TSE:8591 DFS NSE:CHOLAFIN SYF
Traded in Other Exchanges
EDNMY:USA EDNMF:USA EDENp:UK 0MUM:UK QSV:Germany
Address
14-16 Boulevard Garibaldi, Issy-les-Moulineaux, Paris, FRA, 92130
Website
https://www.edenred.com
Edenred is a France-listed prepaid corporate services provider operating in more than 40 countries. The company was listed in 2010 following a spinoff from hotel group Accor. Edenred's main business, Ticket Restaurant, offers prepaid meal vouchers that employers provide to their employees as an additional benefit. The company is also involved in other areas such as prepaid fuel cards and payment and expense-management systems.