Avanza Bank Holding AB (CHIX:AZAS) GF Value Rank : 6 (As of Apr. 30, 2024)

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What is Avanza Bank Holding AB GF Value Rank?

Avanza Bank Holding AB has the GF Value Rank of 6.

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 Avanza Bank Holding AB's GF Value Rank

For the Banks - Regional subindustry, Avanza Bank Holding AB'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.

Avanza Bank Holding AB's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Avanza Bank Holding AB's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Avanza Bank Holding AB's GF Value Rank falls into.

Avanza Bank Holding AB GF Value Rank Related Terms

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Avanza Bank Holding AB (CHIX:AZAS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Avanza Bank Holding AB (CHIX:AZAs) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AZA:Sweden 0NUK:UK

Address

Regeringsgatan 103, Box 1399, Stockholm, SWE, SE-111 93

Website

https://www.avanza.se

Avanza Bank Holding AB is a digital bank that operates in Sweden and serves primarily private customers. The bank emphasizes its online strategy to drive lower costs for its deposit base based on the law of large numbers. Its cost base is centered on a high percentage of fixed costs, primarily personnel costs. The bank does not charge its customers fixed fees or deposit fees. Income is generated when customers carry out transaction themselves, primarily through brokerage fees from securities trading, net interest income from deposits and lending, fund commissions, foreign exchange income, and other income from suppliers of investment products. Over the long term, income growth depends on the bank's ability to grow savings capital.

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