R&Q Insurance Holdings (LSE:RQIH) GF Value Rank : 0 (As of May. 22, 2024)

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What is R&Q Insurance Holdings GF Value Rank?

R&Q Insurance Holdings 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.

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R&Q Insurance Holdings (LSE:RQIH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » R&Q Insurance Holdings Ltd (LSE:RQIH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

RQIHF:USA

Address

40 Church Street, FB Perry Building, PO Box HM 650, Hamilton, BMU, HM HX

Website

https://www.rqih.com

R&Q Insurance Holdings Ltd provides services of legacy acquisitions and program management. The company together with its subsidiaries owns and manages insurance companies as underwriting managers for active insurers. The company's segment includes Legacy Insurance, Program Management, and Corporate / Other. It generates maximum revenue from the Legacy segment. Legacy segment acquires legacy portfolios and insurance debt and provides capital support to the Group's managed Lloyd's Syndicates. Geographically, it derives a majority of revenue from North America and also has a presence in the United Kingdom and Europe.

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