Aviva (AVVIY) GF Value Rank

: 9 (As of Today)

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Aviva has the GF Value Rank of 9.

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 Insurance - Diversified subindustry, Aviva'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.

Aviva GF Value Rank Distribution

For the Insurance industry and Financial Services sector, Aviva's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Aviva's GF Value Rank falls into.

Aviva GF Value Rank Related Terms

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Aviva (AVVIY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Aviva PLC (OTCPK:AVVIY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AIVAF:USA AVl:UK AV.B.PFD:UK AV.A.PFD:UK AV.:UK GU81:Germany GU80:Germany GU81:Germany

Address

St Helen's, 1 Undershaft, London, GBR, EC3P 3DQ

Website

https://www.aviva.com

Aviva is a multiline insurer that is listed on the London Stock Exchange. The company traces its roots back to the 17th century with the establishment of Hand-in-Hand. After the Great Fire of London, this mutual was formed to provide protection against fires. Hand-in-Hand was then acquired by Commercial Union in 1905. Over the years, Hand-in-Hand insured London landmarks such as London Bridge, the British Museum, and the Palace in Lambeth. The life insurance part of Aviva began in the early part of the 18th century with the establishment of Amicable, again a mutual society but this time to protect widows and children against the loss of life.