NewStar Financial (NewStar Financial) GF Value Rank : 0 (As of May. 01, 2024)

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What is NewStar Financial GF Value Rank?

NewStar Financial 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.

NewStar Financial GF Value Rank Related Terms

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NewStar Financial (NewStar Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » NewStar Financial Inc (NAS:NEWS) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.newstarfin.com

NewStar Financial Inc is a finance company which develops specialized platforms for complex financing needs of companies and private investors for the middle market. The company and its subsidiary provides asset management services to institutional customers and also manages private credit funds, sponsored funds, series of funds structured as CLOs and managed accounts. Through specialized lending platforms the company provides senior secured debt financing options to mid-sized companies to fund working capital growth strategies, acquisitions, recapitalizations, purchases of equipment and other capital assets. The company derives its revenues from leveraged finance, business credit, real estate, equipment finance and asset management segments.

Executives

Richard E Thornburgh	director	401 N. MAIN STREET, WINSTON-SALEM NC 27101
Frank R Noonan	director
Bradley E Cooper	director	UNIVERSAL AMERICAN FINANCIAL CORP, 6 INTERNATIONAL DR STE 190, RYE BROOK NY 10573
Capital Z Financial Services Fund Ii Lp	10 percent owner
Capital Z Partners Ltd	10 percent owner
Capital Z Partners Lp	10 percent owner
Corsair Capital Llc	10 percent owner	717 FIFTH AVENUE, 24TH FLOOR, NEW YORK NY 10022
Second Curve Capital Llc	10 percent owner	150 N RADNOR CHESTER ROAD, SUITE F120, RADNOR PA 19087
Thomas K Brown	10 percent owner	C/O SECOND CURVE CAPITAL, LLC, 237 PARK AVENUE, 9TH FLOOR, NEW YORK NY 10017
Mark K Gormley	director	1067 FIFTH AVENUE, #6, NEW YORK NY 10128
Burnaman Phillip R Ii	officer: M.Dir & Head Structured Prods
Joseph W Saunders	director	C/O VISA INC., P.O. BOX 8999, SAN FRANCISCO CA 94128-8999

NewStar Financial (NewStar Financial) Headlines

From GuruFocus

NEWSTAR FINANCIAL, INC. Reports Operating Results (10-K)

By gurufocus 10qk • 03-04-2011