Islamic Arab Insurance Co (DFM:SALAMA) 1-Year Sharpe Ratio: 0.95 (As of Jul. 20, 2026)

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Director of Data and Quant Analytics at GuruFocus
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DFM:SALAMA Islamic Arab Insurance Co DFM:SALAMA
42 GF Score
Price د.إ0.86
GF Value د.إ0.84
Valuation Fairly Valued
! 2 Warning Signs
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What is Islamic Arab Insurance Co 1-Year Sharpe Ratio?

Islamic Arab Insurance Co DFM:SALAMA -1.04% 42 1-Year Sharpe Ratio is 0.95 as of Jul. 20, 2026. GuruFocus rates DFM:SALAMA with a GF Score™ of 42/100 and a GF Value™ of د.إ0.84 (Fairly Valued). The stock has 2 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-20), Islamic Arab Insurance Co's 1-Year Sharpe Ratio is 0.95.


Islamic Arab Insurance Co  (DFM:SALAMA) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.


Islamic Arab Insurance Co 1-Year Sharpe Ratio Related Terms


DFM:SALAMA vs BRK.A, AIG, HIG: 1-Year Sharpe Ratio Comparison

For the Insurance - Diversified subindustry, Islamic Arab Insurance Co's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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.


Islamic Arab Insurance Co 1-Year Sharpe Ratio vs Insurance Industry

For the Insurance industry and Financial Services sector, Islamic Arab Insurance Co's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Islamic Arab Insurance Co's 1-Year Sharpe Ratio falls into.


DFM:SALAMA
42GF Score
Islamic Arab Insurance Co DFM:SALAMA
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Islamic Arab Insurance Co 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 0.95 mean?
Islamic Arab Insurance Co (DFM:SALAMA) has a 1-Year Sharpe Ratio of 0.95 as of Jul. 20, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Islamic Arab Insurance Co and its competitors.
Is Islamic Arab Insurance Co's 1-Year Sharpe Ratio too high?
Islamic Arab Insurance Co's current 1-Year Sharpe Ratio is 0.95. Overall, Islamic Arab Insurance Co has a GF Score™ of 42/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Islamic Arab Insurance Co's 1-Year Sharpe Ratio compare to BRK.A and AIG?
Islamic Arab Insurance Co's 1-Year Sharpe Ratio of 0.95 can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Insurance company?
A good 1-Year Sharpe Ratio depends on the Insurance industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Islamic Arab Insurance Co and its competitors. Islamic Arab Insurance Co's current 1-Year Sharpe Ratio is 0.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Islamic Arab Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Islamic Arab Insurance Co (DFM:SALAMA) is currently considered Fairly Valued. The stock's GF Value™ is د.إ0.84, compared to a current price of د.إ0.86 — trading 1.8% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.95. Islamic Arab Insurance Co's overall GF Score™ is 42/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Islamic Arab Insurance Co (DFM:SALAMA), the current 1-Year Sharpe Ratio is 0.95 as of Jul. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Islamic Arab Insurance Co (DFM:SALAMA) Overvalued in 2026?

Based on GuruFocus' analysis, Islamic Arab Insurance Co stock appears to be overvalued. The current stock price of د.إ0.86 is trading 1.8% above its estimated GF Value™ of د.إ0.84. GuruFocus considers Islamic Arab Insurance Co to be Fairly Valued.

Key valuation signals for DFM:SALAMA:

  • 1-Year Sharpe Ratio: 0.95
  • GF Value™: د.إ0.84 vs. price of د.إ0.86 (1.8% above fair value)
  • GF Score™: 42/100 with 2 warning signs

No single metric tells the full story. See the DFM:SALAMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Islamic Arab Insurance Co Business Description

Address Sheikh Rashid Road, Block A, 4th Floor, Spectrum Building, P.O. Box 10214, Oud Metha, Dubai, ARE
Islamic Arab Insurance Co is a Takaful (Islamic Insurance) and Re-Takaful insurance company focusing on providing sharia-compliant takaful solutions to both institutional and individual customers. It offers various insurance products, such as health insurance, auto insurance, different types of life insurance, home insurance, marine insurance, employee benefits plans, savings plans, and property and casualty insurance products, among others. The Group has two segments: General Takaful and Life Takaful. Maximum revenue is generated from the General Takaful business, incorporating all classes of general takaful, including fire, marine, motor, general accident, engineering, and medical. Geographically, the Group derives maximum revenue from Asia, and the rest from Africa.
42GF Score

Get the complete analysis for DFM:SALAMA

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

د.إ0.86
Price
د.إ0.84
GF Value