Ping An Insurance (Group) Co. of China (HKSE:02318) GF Value Rank : 3 (As of Apr. 25, 2024)

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What is Ping An Insurance (Group) Co. of China GF Value Rank?

Ping An Insurance (Group) Co. of China has the GF Value Rank of 3.

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 Ping An Insurance (Group) Co. of China's GF Value Rank

For the Insurance - Life subindustry, Ping An Insurance (Group) Co. of China'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.

Ping An Insurance (Group) Co. of China's GF Value Rank Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Ping An Insurance (Group) Co. of China's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Ping An Insurance (Group) Co. of China's GF Value Rank falls into.

Ping An Insurance (Group) Co. of China GF Value Rank Related Terms

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Ping An Insurance (Group) Co. of China (HKSE:02318) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Ping An Insurance (Group) Co. of China Ltd (HKSE:02318) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

PNGAY:USA PIAIF:USA PZX:Germany 601318:China PZX:Austria

Address

No. 5033 Yitian Road, Ping An Finance Center, 47th, 48th, 109th, 110th, 111th and 112th Floors, Futian District, Guangdong Province, Shenzhen, CHN, 518033

Website

https://www.pingan.cn

Founded in 1988, Ping An Insurance is an integrated financial service provider headquartered in Shenzhen. The company has a focus on the offerings of healthcare services and integrated financial products. Ping An is China's second-largest life and P&C insurer. The company strives for an integrated financial services platform comprising life insurance, P&C insurance, banking, other financial services, and technology. These business segments contributed 65%, 5%, 26%, 2%, and 4% of the company's operating profits, respectively, in 2022.

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