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Cogeco (TSX:CGO) GF Value Rank : 4 (As of Oct. 10, 2024)


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What is Cogeco GF Value Rank?

Cogeco 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 Cogeco's GF Value Rank

For the Telecom Services subindustry, Cogeco'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.

Cogeco's GF Value Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cogeco's GF Value Rank distribution charts can be found below:

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


Cogeco GF Value Rank Related Terms

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

Cogeco Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Cogeco Inc (TSX:CGO) » Definitions » GF Value Rank
Comparable Companies
TSX:TGO TSXV:USS TSXV:GOK TSXV:ADYA TSXV:VMY.H TMUS SHSE:600941 VZ CMCSA T XTER:DTE NSE:BHARTIARTL TSE:9984 TSE:9432 HKSE:00728 TSE:9433 TSE:9434 SAU:7010 MEX:AMX B CHTR
Traded in Other Exchanges
CGECF:USA
Address
1 Place Ville Marie, Bureau 3301, Montreal, QC, CAN, H3B 3N2
Website
https://corpo.cogeco.com
Cogeco Inc is a telecommunications company. The company has operating segments, namely Canadian broadband services, American broadband services and Others. The Canadian and American broadband services segments provide a wide range of Internet, video, and telephony services primarily to residential customers, as well as business services across their coverage areas. The Canadian broadband services activities are carried out by Cogeco Connexion in the provinces of Quebec and Ontario and the American broadband services activities are carried out by Atlantic Broadband in 12 states.