Consorcio Alfa De Administracao (BSP:BRGE5) GF Value Rank : 5 (As of Apr. 26, 2024)

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What is Consorcio Alfa De Administracao GF Value Rank?

Consorcio Alfa De Administracao has the GF Value Rank of 5.

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 Consorcio Alfa De Administracao's GF Value Rank

For the Financial Conglomerates subindustry, Consorcio Alfa De Administracao'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.

Consorcio Alfa De Administracao's GF Value Rank Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Consorcio Alfa De Administracao's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Consorcio Alfa De Administracao's GF Value Rank falls into.

Consorcio Alfa De Administracao GF Value Rank Related Terms

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

Consorcio Alfa De Administracao (BSP:BRGE5) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Consorcio Alfa De Administracao SA (BSP:BRGE5) » Definitions » GF Value Rank

Traded in Other Exchanges

BRGE8:Brazil BRGE6:Brazil BRGE3:Brazil BRGE12:Brazil BRGE11:Brazil

Address

Al. Santos, 466, Terreo Cerqueira Cesar, Sao Paulo, SP, BRA, CEP 01418-000

Website

http://www.alfanet.com.br

Consorcio Alfa De Administracao SA is an investment holding company. It invests in companies engaged in the financial sector, insurance industry, information technology (IT) and data services, among others.

Consorcio Alfa De Administracao (BSP:BRGE5) Headlines

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