GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Adamjee Life Assurance Co Ltd (KAR:ALIFE) » Definitions » GF Value Rank

Adamjee Life Assurance Co (KAR:ALIFE) GF Value Rank : 0 (As of Jun. 07, 2024)


View and export this data going back to 2022. Start your Free Trial

What is Adamjee Life Assurance Co GF Value Rank?

Adamjee Life Assurance Co has the GF Value Rank of 0.

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.


Adamjee Life Assurance Co GF Value Rank Related Terms

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


Adamjee Life Assurance Co (KAR:ALIFE) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
I. I Chundrigar Road, Adamjee House, 3rd and 4th Floor, Karachi, PAK, 7400
Adamjee Life Assurance Co Ltd is engaged in the life insurance business carrying on non-participating business only. The company has six operating segment which includes Conventional Business, Accident and Health Business, Non-Unitised Investment Linked Business, Unit Linked Business, Individual Family Takaful Business, and Group Family Takaful Business. Its key revenue is generated from the Unit Linked Business which provides life assurance coverage to individuals under unit-linked investment policies issued by the Company.

Adamjee Life Assurance Co (KAR:ALIFE) Headlines

No Headlines