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Bayan Investment Holding Co KSCP (KUW:BAYANINV) GF Value Rank : 0 (As of Dec. 12, 2024)


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What is Bayan Investment Holding Co KSCP GF Value Rank?

Bayan Investment Holding Co KSCP has the GF Value Rank of 0.

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.


Bayan Investment Holding Co KSCP GF Value Rank Related Terms

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Bayan Investment Holding Co KSCP Business Description

Traded in Other Exchanges
N/A
Address
Al-Qibla, Fahad Al-Salem Street, 11th & 12th Floors, Building No. 21, Area No. 12, Suad Commercial Complex, Kuwait City, KWT
Bayan Investment Holding Co KSCP is involved in carrying out all portfolio management operations and collective investment schemes. The company operates in various segments that include Investment Operations, which invests in securities, portfolio and funds; Asset Management & Advisory services segment, which invest and manage client portfolios and funds; Real Estate segment, which includes holding investment properties for capital appreciation & selling other properties; and Industrial segment includes production, manufacturing, and selling of ferrite and geese materials.

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