Axis Bank (LSE:AXBC) GF Value Rank : 8 (As of May. 05, 2024)

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What is Axis Bank GF Value Rank?

Axis Bank has the GF Value Rank of 8.

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 Axis Bank's GF Value Rank

For the Banks - Regional subindustry, Axis Bank'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.

Axis Bank's GF Value Rank Distribution in the Banks Industry

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

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

Axis Bank GF Value Rank Related Terms

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Axis Bank (LSE:AXBC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Axis Bank Ltd (LSE:AXBC) » Definitions » GF Value Rank

Traded in Other Exchanges

AXISBANK:India 532215:India AXBl:UK AXB:UK UZC:Germany UZC:Germany

Address

Pandurang Budhkar Marg, Axis House, C-2, Wadia International Centre, Worli, Mumbai, MH, IND, 400 025

Website

https://www.axisbank.com

Axis Bank Ltd is a full-service bank operating mostly in India. The bank operates under four segments: treasury, corporate/wholesale banking, retail banking, and other banking. Treasury operations include security investments and derivative trading. Corporate/wholesale banking solutions include mid/large corporate relationships, corporate advisory, project appraisals, and syndication. Retail banking solutions include lending to individual/small businesses, savings accounts, debit and credit cards, ATMs and mobile banking, personal loans. Other banking operations include third-party product distribution and other banking transactions. A plurality of the bank's loan and advances comes from its corporate customers, while a plurality of its fee income comes from its retail customers.

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