IIFL Finance (BOM:532636) GF Value Rank : 2 (As of May. 19, 2024)

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What is IIFL Finance GF Value Rank?

IIFL Finance has the GF Value Rank of 2.

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 IIFL Finance's GF Value Rank

For the Credit Services subindustry, IIFL Finance'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.

IIFL Finance's GF Value Rank Distribution in the Credit Services Industry

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

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

IIFL Finance GF Value Rank Related Terms

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

IIFL Finance (BOM:532636) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » IIFL Finance Ltd (BOM:532636) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

IIFL:India

Address

N.S. Phadke Marg, 802, 8 th Floor, Hub Town Solaris, Vijay Nagar, Andheri East, Mumbai, MH, IND, 400069

Website

https://www.iifl.com

IIFL Finance Ltd and its subsidiaries provide financial services in India. The company is based in India and generates all revenue domestically. It operates under two primary business units: core products and synergistic products. Core products account for the firm's offerings of home loans, gold loans, business loans, and microfinance solutions. Synergistic products involve the company's operations in capital markets, construction, and real estate. Home loans and business loans together make up the operating component of its product offerings.

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