Capfin India (BOM:539198) GF Value Rank : 1 (As of Jun. 22, 2024)

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What is Capfin India GF Value Rank?

Capfin India has the GF Value Rank of 1.

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 Capfin India's GF Value Rank

For the Credit Services subindustry, Capfin India'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.

Capfin India's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Capfin India's GF Value Rank distribution charts can be found below:

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

Capfin India GF Value Rank Related Terms

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Capfin India (BOM:539198) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Capfin India Ltd (BOM:539198) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

New Rohtak Road, 1C/13, Basement Rajnigandha Building, New Delhi, IND, 110005

Website

https://www.capfinindia.com

Capfin India Ltd is a non-banking financial company. It deals in the investment business, shares, stocks, and securities. It also deals in underwriting, share stock, debentures, debentures stock, bonds, mortgages, obligations, and securities. It also acts as a service agent and offers after-sale services including technical consultancy. Capfin generates revenue from the sale of shares and interest income from loan advances. The Company operates in a single segment that is ''providing loans to corporates and non-corporates".

Capfin India (BOM:539198) Headlines

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