Itausa Investimentos ITAU (BSP:ITSA4) GF Value Rank : 4 (As of Dec. 11, 2024)

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What is Itausa Investimentos ITAU GF Value Rank?

Itausa Investimentos ITAU 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 Itausa Investimentos ITAU's GF Value Rank

For the Conglomerates subindustry, Itausa Investimentos ITAU'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.

Itausa Investimentos ITAU's GF Value Rank Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Itausa Investimentos ITAU's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Itausa Investimentos ITAU's GF Value Rank falls into.

Itausa Investimentos ITAU GF Value Rank Related Terms

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Itausa Investimentos ITAU Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Itausa Investimentos ITAU SA (BSP:ITSA4) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ITSA3:Brazil

Address

Avenue Paulista, 1938, 5th Floor, Bela Vista, Sao Paulo, SP, BRA, 01310-200

Website

https://www.itausa.com.br

Itausa Investimentos ITAU SA is a Brazilian investment holding company. It has equity interests in the companies engaged in the financial, consumer goods, construction materials, sanitation, energy and infrastructure sectors. Its portfolio, consists of brands such as: Itau Unibanco, Dexco, Alpargatas, CCR, Aegea Saneamento, Copa Energia and Nova Transportadora do Sudeste (NTS). Majority of the revenue for the company is generated from Itau Unibanco which is a banking institution that offers, directly or by means of its subsidiaries, a broad range of credit products and other financial services to a diversified individual and corporate client base in Brazil and abroad.

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