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Gainsco (Gainsco) GF Value Rank : 0 (As of May. 05, 2024)


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What is Gainsco GF Value Rank?

Gainsco 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.


Gainsco GF Value Rank Related Terms

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Gainsco (Gainsco) Business Description

Traded in Other Exchanges
N/A
Address
3333 Lee Parkway, Suite 1200, Dallas, TX, USA, 75219-5134
Gainsco Inc is a United States-based property and casualty insurance holding company. It focuses on the non-standard personal automobile market, specializing in minimum-limits personal auto insurance. The company's insurance brand is GAINSCO Auto Insurance. It sells the insurance policies through independent partner agents and website comparison shopping places.
Executives
Robert J Boulware director 101 JEFFERSON DRIVE, MENLO PARK CA 94025
Sam Rosen other: Former Director 4428 RIVERIDGE DRIVE, FORT WORTH TX 76109
Robert W Stallings director, 10 percent owner, officer: Executive Chairman 5242 BUENA VISTA DRIVE, FRISCO TX 75034
John C Goff director, 10 percent owner 500 COMMERCE STREET, SUITE 700, FORT WORTH TX 76102
James Richard Reis 10 percent owner, officer: Executive Vice President 3333 LEE PARKWAY, SUITE 1200, DALLAS TX 75219

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