Edelweiss Financial Services (BOM:532922) GF Value Rank : 7 (As of May. 13, 2024)

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What is Edelweiss Financial Services GF Value Rank?

Edelweiss Financial Services has the GF Value Rank of 7.

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 Edelweiss Financial Services's GF Value Rank

For the Capital Markets subindustry, Edelweiss Financial Services'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.

Edelweiss Financial Services's GF Value Rank Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Edelweiss Financial Services's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Edelweiss Financial Services's GF Value Rank falls into.

Edelweiss Financial Services GF Value Rank Related Terms

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Edelweiss Financial Services (BOM:532922) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Edelweiss Financial Services Ltd (BOM:532922) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EDELWEISS:India

Address

Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai, MH, IND, 400098

Website

https://www.edelweissfin.com

Edelweiss Financial Services Ltd is principally engaged in providing investment banking services and holding company activities comprising development, managerial, and financial support to the business. The company's businesses are categorized into a Credit business, Asset Reconstruction business, Asset Management Business, and Insurance Business. The credit business consists of Retail Credit, Corporate Credit, and Distress Credit. The Asset Management business provides clients with a comprehensive bouquet of investment solutions including alternative strategies and mutual funds. The Insurance business consists of Life and General Insurance. The company concentrates its business in India.

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