Bandhan Bank (BOM:541153) GF Value Rank : 2 (As of May. 27, 2024)

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What is Bandhan Bank GF Value Rank?

Bandhan Bank has the GF Value Rank of 2.

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 Bandhan Bank's GF Value Rank

For the Banks - Regional subindustry, Bandhan 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.

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

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

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

Bandhan Bank GF Value Rank Related Terms

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Bandhan Bank (BOM:541153) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Bandhan Bank Ltd (BOM:541153) » Definitions » GF Value Rank

Traded in Other Exchanges

BANDHANBNK:India

Address

Adventz Infinity 5, Salt Lake City, BN 5, Sector V, 12th to 14th Floor, Kolkata, WB, IND, 700 091

Website

https://www.bandhanbank.com

Bandhan Bank Ltd provides banking services. It offers a variety of asset and liability products and services designed for micro banking and general banking. The bank's operating segments are Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. Its treasury operations include investments in sovereign securities and trading operations, Retail banking includes lending to individuals/small businesses along with liability products, card services, internet banking, mobile banking, ATM services, and NRI services. The corporate/Wholesale segment includes corporate relationships not included in Retail Banking and Other segments include para-banking activities. It generates a majority of its revenue from the retail banking segment.

Bandhan Bank (BOM:541153) Headlines

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