BFF Bank SpA (MIL:BFF) GF Value Rank : 1 (As of May. 05, 2024)

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What is BFF Bank SpA GF Value Rank?

BFF Bank SpA 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 BFF Bank SpA's GF Value Rank

For the Credit Services subindustry, BFF Bank SpA'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.

BFF Bank SpA's GF Value Rank Distribution in the Credit Services Industry

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

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

BFF Bank SpA GF Value Rank Related Terms

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BFF Bank SpA (MIL:BFF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » BFF Bank SpA (MIL:BFF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BFFm:UK 0RON:UK 2BF:Germany

Address

Via Domenichino 5, Milan, ITA, 20149

Website

http://www.bff.com

BFF Bank SpA is an independent specialty finance company engaged in three business units; Factoring & Lending BU, which offers products such as non-recourse factoring, lending, and credit management mainly to public sector suppliers and public administration bodies, Securities Services BU, which deals with custodian banking for investment funds and related services such as fund accounting, and transfer agents for national managers and banks and for various investment funds such as pension funds, mutual funds and alternative funds, and Payments BU, which deals with payment processing, corporate payments, and cheques and bills and has as customers medium-small Italian banks, medium-large companies and boasts a partnership with Nexi.

BFF Bank SpA (MIL:BFF) Headlines

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