GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » New Amsterdam Invest NV (XAMS:NAI) » Definitions » GF Value Rank

New Amsterdam Invest NV (XAMS:NAI) GF Value Rank : 0 (As of Jun. 17, 2024)


View and export this data going back to 2021. Start your Free Trial

What is New Amsterdam Invest NV GF Value Rank?

New Amsterdam Invest NV 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.


New Amsterdam Invest NV GF Value Rank Related Terms

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


New Amsterdam Invest NV (XAMS:NAI) Business Description

Traded in Other Exchanges
Address
Herengracht 280, Amsterdam, NLD, 1016 BX
New Amsterdam Invest NV is a special purpose acquisition company. The main purpose of the company is to acquire a significant stake in a business or company in the commercial real estate sector with principal operations in Europe, preferably in the Netherlands, Germany, the United Kingdom, or the United States of America.

New Amsterdam Invest NV (XAMS:NAI) Headlines

No Headlines