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Perpetual (ASX:PPT) GF Value Rank : 9 (As of Apr. 30, 2024)


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What is Perpetual GF Value Rank?

Perpetual has the GF Value Rank of 9.

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 Perpetual's GF Value Rank

For the Asset Management subindustry, Perpetual'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.

Perpetual's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Perpetual's GF Value Rank distribution charts can be found below:

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


Perpetual GF Value Rank Related Terms

Thank you for viewing the detailed overview of Perpetual's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Perpetual (ASX:PPT) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Perpetual Ltd (ASX:PPT) » Definitions » GF Value Rank
Comparable Companies
ASX:PNI ASX:MXT ASX:MFF ASX:WLE ASX:WAM ASX:IFL ASX:MFG ASX:BKI ASX:AUI ASX:DUI BLK BX KKR OSTO:INVE A APO TSX:BN BK AMP LSE:III XSWX:PGHN
Traded in Other Exchanges
PPTTF:USA PVQ:Germany
Address
123 Pitt Street, Level 18, Angel Place, Sydney, NSW, AUS, 2000
Website
https://www.perpetual.com.au
Perpetual is one of Australia's oldest financial services firms, founded in 1886. It has three operating segments, with the investments business being the main earnings generator. It is an active manager of listed assets. Perpetual also provides financial planning services to high-net-worth clients via its private segment. In its trust segment, it provides outsourced responsible entity services to funds, as well as custodial and trustee services in the debt capital markets, particularly in securitization issuances.