Stewart Information Services (FRA:SIU) GF Value Rank : 1 (As of May. 12, 2024)

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What is Stewart Information Services GF Value Rank?

Stewart Information Services 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 Stewart Information Services's GF Value Rank

For the Insurance - Property & Casualty subindustry, Stewart Information Services'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.

Stewart Information Services's GF Value Rank Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Stewart Information Services's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Stewart Information Services's GF Value Rank falls into.

Stewart Information Services GF Value Rank Related Terms

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Stewart Information Services (FRA:SIU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Stewart Information Services Corp (FRA:SIU) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

STC:USA

Address

1360 Post Oak Boulevard, Suite 100, Houston, TX, USA, 77056

Website

https://www.stewart.com

Stewart Information Services Corp is a customer-focused, title insurance and real estate services company offering products and services to home buyers and sellers, mortgage lenders and servicers, attorneys, and home builders. It has three operating segments; Title insurance and related services include the functions of searching, examining, closing, and insuring the condition of the title to real property. It also includes home and personal insurance services, Real estate solutions segment supports the real estate mortgage industry by providing appraisal management services, online notarization and closing solutions, credit, and real estate information services, search and valuation services, and Corporate and Other segment is comprised of the parent holding company.

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