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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-08-23), Islamic Arab Insurance Co's 3-Year Sortino Ratio is 0.75.
Islamic Arab Insurance Co (DFM:SALAMA) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. 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.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Islamic Arab Insurance Co 3-Year Sortino Ratio Related Terms
DFM:SALAMA vs BRK.A, AIG, HIG: 3-Year Sortino Ratio Comparison
For the Insurance - Diversified subindustry, Islamic Arab Insurance Co's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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 3-Year Sortino Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Islamic Arab Insurance Co's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Islamic Arab Insurance Co's 3-Year Sortino Ratio falls into.
Islamic Arab Insurance Co 3-Year Sortino Ratio Calculation
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Islamic Arab Insurance Co (DFM:SALAMA) has a 3-Year Sortino Ratio of 0.75 as of Aug. 23, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Islamic Arab Insurance Co and its competitors.
Is Islamic Arab Insurance Co's 3-Year Sortino Ratio too high?
Islamic Arab Insurance Co's current 3-Year Sortino Ratio is 0.75. Overall, Islamic Arab Insurance Co has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Islamic Arab Insurance Co's 3-Year Sortino Ratio compare to BRK.A and AIG?
Islamic Arab Insurance Co's 3-Year Sortino Ratio of 0.75 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 3-Year Sortino Ratio for an Insurance company?
A good 3-Year Sortino Ratio depends on the Insurance industry context. However, 3-Year Sortino 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 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Islamic Arab Insurance Co and its competitors. Islamic Arab Insurance Co's current 3-Year Sortino Ratio is 0.75. 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 Significantly Overvalued. The stock's GF Value™ is د.إ0.64, compared to a current price of د.إ1.25 — trading 95.3% above its estimated fair value. The current 3-Year Sortino Ratio is 0.75. Islamic Arab Insurance Co's overall GF Score™ is 43/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Islamic Arab Insurance Co (DFM:SALAMA), the current 3-Year Sortino Ratio is 0.75 as of Aug. 23, 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.إ1.25 is trading 95.3% above its estimated GF Value™ of د.إ0.64.
GuruFocus considers Islamic Arab Insurance Co to be Significantly Overvalued.
Key valuation signals for DFM:SALAMA:
3-Year Sortino Ratio: 0.75
GF Value™: د.إ0.64 vs. price of د.إ1.25 (95.3% above fair value)
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 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.
43GF Score
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