Akita Bank (Akita Bank) GF Value Rank : 3 (As of May. 26, 2024)

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What is Akita Bank GF Value Rank?

Akita Bank 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 of Akita Bank's GF Value Rank

For the Banks - Regional subindustry, Akita Bank'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.

Akita Bank's GF Value Rank Distribution in the Banks Industry

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

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

Akita Bank GF Value Rank Related Terms

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

Akita Bank (Akita Bank) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Akita Bank Ltd (OTCPK:AKBKF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

8343:Japan

Address

2-1 Sanno 3-Chome, Akita, JPN, 010-8655

Website

http://www.akita-bank.co.jp

Akita Bank Ltd is the banking subsidiary of the Akita Bank Group, which is composed of a Japanese regional bank and five consolidated subsidiaries operating primarily in the Akita Prefecture. The bank's strategy emphasizes regional market penetration to drive profitability. The group offers various financial services, principally banking. In addition, it offers leasing, consulting, guarantee services, and credit card services. Just over half of its earning assets are in loans and bills discounted, followed in size by securities. Most of the group's income is generated through net interest income, followed by fees and commissions.

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