The Swatch Group AG (XSWX:UHR) GF Value Rank : 4 (As of Apr. 29, 2024)

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What is The Swatch Group AG GF Value Rank?

The Swatch Group AG has the GF Value Rank of 4.

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 The Swatch Group AG's GF Value Rank

For the Luxury Goods subindustry, The Swatch Group AG'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.

The Swatch Group AG's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's GF Value Rank distribution charts can be found below:

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

The Swatch Group AG GF Value Rank Related Terms

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The Swatch Group AG (XSWX:UHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Swatch Group AG (XSWX:UHR) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SWGNF:USA SWGAY:USA SWGAF:USA UHRNz:UK UHRz:UK 0QJV:UK UHRA:Germany UHRN:Switzerland

Address

Seevorstadt 6, Bienne, CHE, 2501

Website

https://www.swatchgroup.com

Swatch Group's biggest brands are Omega (number-two Swiss watch brand by sales after Rolex), Longines (the largest premium watch brand and number four by sales globally), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. Swatch group employs over 31,000 people, half of them in Switzerland. We estimate that Swatch Group makes about 30% of its sales from Omega, 17% from ultraluxury brands, 20% from Longines, 10% from Tissot, and 6% from Swatch. We estimate Omega and Longines to be the group's most profitable brands.

The Swatch Group AG (XSWX:UHR) Headlines

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