National Bank Of Malawi (MSW:NBM) GF Value Rank : 5 (As of May. 25, 2024)

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What is National Bank Of Malawi GF Value Rank?

National Bank Of Malawi has the GF Value Rank of 5.

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 National Bank Of Malawi's GF Value Rank

For the Banks - Regional subindustry, National Bank Of Malawi'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.

National Bank Of Malawi's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, National Bank Of Malawi's GF Value Rank distribution charts can be found below:

* The bar in red indicates where National Bank Of Malawi's GF Value Rank falls into.

National Bank Of Malawi GF Value Rank Related Terms

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National Bank Of Malawi (MSW:NBM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » National Bank Of Malawi PLC (MSW:NBM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

7 Henderson Street, NBM Tower, P.O Box 945, Blantyre, MWI

Website

https://www.natbank.co.mw

National Bank Of Malawi PLC provides personal, corporate, and investment banking as well as stockbroking, insurance, and pension administration services in Malawi. Its business operations are divided into three segments including Retail and corporate banking that incorporates savings, deposits, investment savings products, consumer loans, current accounts, overdrafts, loans, and other credit facilities, trade finance, and corporate leasing; Treasury segment offers financial instruments trading, dealings in foreign currency, stock broking and derivative products; and Other operations comprising fund management, custodial services and providing training services. Revenue from Retail and corporate banking is one of the majority sources of income for the Bank.

National Bank Of Malawi (MSW:NBM) Headlines

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