Alahli REIT Fund 1 (SAU:4338) GF Value Rank : 4 (As of May. 25, 2024)

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What is Alahli REIT Fund 1 GF Value Rank?

Alahli REIT Fund 1 has the GF Value Rank of 4.

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 Alahli REIT Fund 1's GF Value Rank

For the REIT - Diversified subindustry, Alahli REIT Fund 1'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.

Alahli REIT Fund 1's GF Value Rank Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Alahli REIT Fund 1's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Alahli REIT Fund 1's GF Value Rank falls into.

Alahli REIT Fund 1 GF Value Rank Related Terms

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Alahli REIT Fund 1 (SAU:4338) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

King Saud Road, P.O. Box 22216, Regional Building of National Commercial Bank, Riyadh, SAU, 11495

Website

https://www.alahlireit.com

Alahli REIT Fund 1 invests in income-producing properties. Its objective is to provide periodic rental income to Unitholders through investing in developed income-generating properties and to potentially provide capital growth by developing and/or expanding and/or selling assets. The Fund invests mainly in developed income-generating real estate assets and may invest part of its assets and cash surplus in Murabaha transactions and short-term deposits in Saudi Riyals with banks that are licensed by the Saudi Central Bank (SAMA) and operate in Saudi Arabia. The Fund may also invest in public money market funds approved by CMA.

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