Alexander Forbes Group Holdings (JSE:AFH) GF Value Rank : 1 (As of May. 23, 2024)

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What is Alexander Forbes Group Holdings GF Value Rank?

Alexander Forbes Group Holdings has the GF Value Rank of 1.

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 Alexander Forbes Group Holdings's GF Value Rank

For the Financial Conglomerates subindustry, Alexander Forbes Group Holdings'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.

Alexander Forbes Group Holdings's GF Value Rank Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Alexander Forbes Group Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Alexander Forbes Group Holdings's GF Value Rank falls into.

Alexander Forbes Group Holdings GF Value Rank Related Terms

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Alexander Forbes Group Holdings (JSE:AFH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Alexander Forbes Group Holdings Ltd (JSE:AFH) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

115 West Street, Alexander Forbes, Sandown, Johannesburg, GT, ZAF, 2196

Website

https://www.alexanderforbes.co.za

Alexander Forbes Group Holdings Ltd offers integrated retirement, investment, life, and insurance solutions to customers worldwide. Alexander's business is divided into two platforms, institutional and retail. Its reported segments Investment Solutions, AF Financial Services, and AF Insurance serve clients under each of its platforms. The group's customer base is composed of retirement funds, corporations, trustees, unions, individuals, dependents, and other organizations. Products and services include consulting and advisory for a range of different situations, such as actuarial, asset and investment, and beneficiary fund. On the retail side, individuals and dependents are offered insurance, research, investment portfolios, and other services.

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