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Sanlam Kenya (NAI:SLAM) GF Value Rank : 8 (As of Jun. 22, 2024)


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What is Sanlam Kenya GF Value Rank?

Sanlam Kenya has the GF Value Rank of 8.

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 Sanlam Kenya's GF Value Rank

For the Insurance - Life subindustry, Sanlam Kenya'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.

Sanlam Kenya's GF Value Rank Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Sanlam Kenya's GF Value Rank distribution charts can be found below:

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


Sanlam Kenya GF Value Rank Related Terms

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

Sanlam Kenya (NAI:SLAM) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Sanlam Kenya PLC (NAI:SLAM) » Definitions » GF Value Rank
Comparable Companies
NAI:LBTY NAI:CRWN NAI:UNGA NAI:SASN NAI:TPSE NAI:WTK NAI:CARB NAI:CIC NAI:HFCK NAI:BOC SHSE:601628 SHSE:601318 HKSE:01299 BOM:543526 AFL MET PRU SHSE:601601 TSX:MFC LSE:PRU
Traded in Other Exchanges
N/A
Address
Sanlam Tower, Waiyaki Way, P.O Box 44041, Westlands, Nairobi, KEN, 00100
Website
https://www.sanlam.com/kenya
Sanlam Kenya PLC is engaged in the underwriting of all classes of long-term and short-term insurance businesses through its subsidiaries. The reporting business segments of the company are the Ordinary life insurance segment offers individual life insurance products; the Superannuation segment deals with group insurance schemes; the General insurance segment offers general insurance products, and the Investments segment provides investment management services. The company generates all its revenue from Kenya.