GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Consumer Automotive Finance Inc (OTCPK:CAFI) » Definitions » GF Value Rank

Consumer Automotive Finance (Consumer Automotive Finance) GF Value Rank : 0 (As of May. 26, 2024)


View and export this data going back to 2004. Start your Free Trial

What is Consumer Automotive Finance GF Value Rank?

Consumer Automotive Finance 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.


Consumer Automotive Finance GF Value Rank Related Terms

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


Consumer Automotive Finance (Consumer Automotive Finance) Business Description

Traded in Other Exchanges
N/A
Address
746 North Drive, STE A, Melbourne, FL, USA, 32934
Consumer Automotive Finance Inc is an indirect automotive financial services company that focuses on servicing the sub-prime market. It has developed a criteria-based system, which has been effective in evaluating deal structure as well as a consumer's ability to pay for an automobile loan. The company provides financing solutions for buying Cars and Trucks and also provides a wide range of credit profiles through dealers in Nevada and soon Arizona and Utah, as well as online through the Dealer Loan programs.
Executives
Scott Eugene Miller officer: CEO 2239 N. HAYDEN RD., SUITE 100, SCOTTSDALE AZ 85257
Jamie Kerr director, 10 percent owner, officer: President 2925 N. 67TH PLACE, SCOTTSDALE AZ 85251
John Shaffer director, officer: Treasurer 2925 N. 67TH PLACE, SCOTTSDALE AZ 85251

Consumer Automotive Finance (Consumer Automotive Finance) Headlines