Grupo Financiero Galicia (BUE:GGAL) GF Value Rank : 1 (As of Apr. 25, 2024)

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What is Grupo Financiero Galicia GF Value Rank?

Grupo Financiero Galicia has the GF Value Rank of 1.

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 Grupo Financiero Galicia's GF Value Rank

For the Banks - Regional subindustry, Grupo Financiero Galicia'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.

Grupo Financiero Galicia's GF Value Rank Distribution in the Banks Industry

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

* The bar in red indicates where Grupo Financiero Galicia's GF Value Rank falls into.

Grupo Financiero Galicia GF Value Rank Related Terms

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

Grupo Financiero Galicia (BUE:GGAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Grupo Financiero Galicia SA (BUE:GGAL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

GGAL:USA GGAL:Mexico GF4:Germany

Address

Tte. Gral. Juan D. Peron 430, 25th Floor, Buenos Aires, ARG, C1038 AAJ

Website

https://www.gfgsa.com

Grupo Financiero Galicia SA is a financial service holding company. It provides general banking services, proprietary brand credit card services, personal loans, insurance, and other services. The company's operating business segments are Banks, Ecosistema Naranja X, Insurance, Adjustments, and Other Businesses. It generates maximum revenue from Banks. Geographically its operate in Argentina, Uruguay, and the majority of its revenue comes from Argentina.

Grupo Financiero Galicia (BUE:GGAL) Headlines

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