Banco Bilbao Vizcaya Argentaria (XAMS:BBV) GF Value Rank

: 3 (As of Today)

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Banco Bilbao Vizcaya Argentaria 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

For the Banks - Diversified subindustry, Banco Bilbao Vizcaya Argentaria'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.

Banco Bilbao Vizcaya Argentaria GF Value Rank Distribution

For the Banks industry and Financial Services sector, Banco Bilbao Vizcaya Argentaria's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Banco Bilbao Vizcaya Argentaria's GF Value Rank falls into.

Banco Bilbao Vizcaya Argentaria GF Value Rank Related Terms

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

Banco Bilbao Vizcaya Argentaria (XAMS:BBV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Banco Bilbao Vizcaya Argentaria SA (XAMS:BBV) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BBVXF:USA BBVA:USA BBVA:Peru BBVA:Mexico BBVA:Italy 0A2B:UK BBVAe:UK BVA:UK BBVA:Spain BOY:Germany BILB34:Brazil BBVA:Austria BBVA:Argentina

Address

Calle Azul, 4, Madrid, ESP, 28050

Website

https://www.bbva.com

Despite its Spanish origins, BBVA generates only around a quarter of its profits in Spain. We expect that on a normalised basis, BBVA's market-leading Mexican bank should contribute half of its earnings, while its Turkish operation should account for another 15%. The balance of BBVA's earnings comes from smaller operations in South America. BBVA is overwhelmingly a retail and commercial bank, with corporate and investment banking forming a minor part of the overall business. BBVA also offers insurance and investment products through its banking networks.

Banco Bilbao Vizcaya Argentaria (XAMS:BBV) Headlines

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