Ricoh Leasing Co (TSE:8566) GF Value Rank : 3 (As of May. 01, 2024)

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What is Ricoh Leasing Co GF Value Rank?

Ricoh Leasing Co has the GF Value Rank of 3.

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 Ricoh Leasing Co's GF Value Rank

For the Credit Services subindustry, Ricoh Leasing Co'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.

Ricoh Leasing Co's GF Value Rank Distribution in the Credit Services Industry

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

* The bar in red indicates where Ricoh Leasing Co's GF Value Rank falls into.

Ricoh Leasing Co GF Value Rank Related Terms

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Ricoh Leasing Co (TSE:8566) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Ricoh Leasing Co Ltd (TSE:8566) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-7-12 Shinonome, Koto-ku, Tokyo, JPN, 135-8518

Website

http://www.r-lease.co.jp

Ricoh Leasing has two primary businesses: lease and installments, and financial services. The lease and installments business, which accounts for the vast majority of the company's revenue, provides business leasing, rental, installment, and credit products for business equipment, information-related equipment, medical equipment, and environment-related equipment. In the financial-services business, Ricoh provides loans to individuals, doctors, and corporations. It also serves as an agent to collect accounts receivable and provide billing services, and it has a credit card business and an asset-management service.

Ricoh Leasing Co (TSE:8566) Headlines

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