Talanx AG (XTER:TLX) GF Value Rank : 1 (As of Apr. 26, 2024)

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What is Talanx AG GF Value Rank?

Talanx AG 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 Talanx AG's GF Value Rank

For the Insurance - Diversified subindustry, Talanx AG'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.

Talanx AG's GF Value Rank Distribution in the Insurance Industry

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

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

Talanx AG GF Value Rank Related Terms

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Talanx AG (XTER:TLX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Talanx AG (XTER:TLX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

0QA8:UK TLXd:UK TLX:Germany TLX:Germany TLX:Germany

Address

HDI-Platz 1, Hannover, NI, DEU, 30659

Website

https://www.talanx.com

Talanx is the third largest insurer in Germany. It sells insurance to businesses, personal lines insurance, and also reinsurance. The origins of Talanx go back to the early 1900s and the founding of two mutuals in Germany, HDI and FSV, that were set up to provide liability insurance to the German iron and steel industry, and fire insurance to the German mining industry because of a growing dissatisfaction with their insurance providers, respectively. These two mutuals merged to form Halfplichtverband der Deutschen Industrie, or HDI, in 1970. Over the years companies outside of metals and mining have joined the mutual.HDI started providing reinsurance services in the mid-1920s and private insurance in the 1950s, and today, HDI owns over three quarters of Talanx.

Executives

Sebastian Gascard

Supervisory Board

Talanx AG (XTER:TLX) Headlines

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