Banca Popolare di Sondrio SpA (MIL:BPSO) GF Value Rank : 1 (As of May. 07, 2024)

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What is Banca Popolare di Sondrio SpA GF Value Rank?

Banca Popolare di Sondrio SpA 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 Banca Popolare di Sondrio SpA's GF Value Rank

For the Banks - Regional subindustry, Banca Popolare di Sondrio SpA'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.

Banca Popolare di Sondrio SpA's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Banca Popolare di Sondrio SpA's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Banca Popolare di Sondrio SpA's GF Value Rank falls into.

Banca Popolare di Sondrio SpA GF Value Rank Related Terms

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

Banca Popolare di Sondrio SpA (MIL:BPSO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Banca Popolare di Sondrio SpA (MIL:BPSO) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

0NWJ:UK 593:Germany

Address

Piazza Garibaldi, 16, Sondrio, ITA, 23100

Website

https://www.popso.it

Banca Popolare di Sondrio SpA is a full-service cooperative bank operating primarily in Northern Italy but also in Central Italy and Switzerland. The bank's overall strategy is geared toward sustaining local economies, particularly small- and medium-sized businesses and households. most of the bank's business is generated through business banking, followed by individual banking activities. The bank generates most of its net revenue through net interest income, followed by net fees and commissions and net trading income. A majority of the bank's earning assets are mortgage loans. The bank's lending strategy revolves around a low propensity for risk and an emphasis on diversification.

Banca Popolare di Sondrio SpA (MIL:BPSO) Headlines

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