Investec (LSE:INVP) GF Value Rank : 5 (As of May. 24, 2024)

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What is Investec GF Value Rank?

Investec has the GF Value Rank of 5.

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 Investec's GF Value Rank

For the Capital Markets subindustry, Investec'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.

Investec's GF Value Rank Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Investec's GF Value Rank distribution charts can be found below:

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

Investec GF Value Rank Related Terms

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

Investec (LSE:INVP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Investec PLC (LSE:INVP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

INPPR.PFD:South Africa INPP.PFD:South Africa INP:South Africa IVTJF:USA INVPl:UK INVR.PFD:UK IVKA:Germany

Address

30 Gresham Street, London, GBR, EC2V 7QP

Website

https://www.investec.com

Investec PLC is part of a dual-listed specialized financial services firm that is the controlling company for the group's non-Southern African businesses. The group reports its operating results and formulates its client strategy in a consolidated manner. Investor PLC represents just under half of the group's operating profits. The group's operating profits are derived from its specialist banking division, followed by its asset management business. The specialist banking business generates net interest income through traditional spread lending. It also generates fees from transactional and advisory activities. Both its asset management and wealth management businesses derive their revenue overwhelmingly from fees and commissions.

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