DCB Bank (NSE:DCBBANK) GF Value Rank : 8 (As of Jun. 05, 2024)

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What is DCB Bank GF Value Rank?

DCB Bank 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 DCB Bank's GF Value Rank

For the Banks - Regional subindustry, DCB Bank'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.

DCB Bank's GF Value Rank Distribution in the Banks Industry

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

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

DCB Bank GF Value Rank Related Terms

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

DCB Bank (NSE:DCBBANK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » DCB Bank Ltd (NSE:DCBBANK) » Definitions » GF Value Rank

Traded in Other Exchanges

532772:India

Address

Senapati Bapat Marg, 601 and 602, 6th Floor, Tower A, Peninsula Business Park, Lower Parel, Mumbai, IND, 400013

Website

https://www.dcbbank.com

DCB Bank Ltd is an Indian commercial bank catering to corporate and retail customers. Its banking operations are structured into retail banking, wholesale banking, treasury operations, and other banking operations. It depends primarily on its retail banking operations for the core of the bank's revenues. Through this segment, it handles the lending, deposit-taking, and other services offered to retail customers. The Corporate/Wholesale Banking segment includes lending, deposit-taking, and other services offered to corporate customers. The treasury operations encompass all financial markets activities such as trading, maintenance of reserve requirements, and resource mobilization, and the other banking operations segment includes para banking activities and merchant banking.

DCB Bank (NSE:DCBBANK) Headlines

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