Sumitomo Mitsui Financial Group (NGO:8316) GF Value Rank

: 1 (As of Today)

View and export this data going back to 2002. Start your Free Trial

Sumitomo Mitsui Financial Group 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

For the Banks - Diversified subindustry, Sumitomo Mitsui Financial Group'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.

Sumitomo Mitsui Financial Group GF Value Rank Distribution

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

* The bar in red indicates where Sumitomo Mitsui Financial Group's GF Value Rank falls into.

Sumitomo Mitsui Financial Group GF Value Rank Related Terms

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

Sumitomo Mitsui Financial Group (NGO:8316) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Sumitomo Mitsui Financial Group Inc (NGO:8316) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SMFNF:USA SMFG:USA SMFG:Mexico 8316:Japan XMFA:Germany S1MF34:Brazil

Address

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-0005

Website

https://www.smfg.co.jp

Sumitomo Mitsui Financial Group is roughly tied with Mizuho Financial Group for the status of Japan's second-largest bank after Mitsubishi UFJ Financial Group. As of March 2023, its market share of domestic loans was 7.1%, compared with 8.1% for MUFG. It has a larger consumer finance business than the other two megabanks, owning 100% of the Promise business and SMBC Card. It also controls one of Japan's largest leasing companies and SMBC Aviation Capital, one of the top five aircraft lessors globally. In securities, its SMBC Nikko unit is Japan's third-largest retail broker, although SMFG has lagged somewhat in institutional securities business and asset management.

Sumitomo Mitsui Financial Group (NGO:8316) Headlines

No Headlines