SVB Financial Group (BSP:S1IV34) GF Value Rank : 2 (As of May. 13, 2024)

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What is SVB Financial Group GF Value Rank?

SVB Financial Group has the GF Value Rank of 2.

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 SVB Financial Group's GF Value Rank

For the Banks - Regional subindustry, SVB Financial Group'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.

SVB Financial Group's GF Value Rank Distribution in the Banks Industry

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

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

SVB Financial Group GF Value Rank Related Terms

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SVB Financial Group (BSP:S1IV34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » SVB Financial Group (BSP:S1IV34) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SIVPQ.PFD:USA

Address

3003 Tasman Drive, Santa Clara, CA, USA, 95054-1191

Website

https://www.svb.com

SVB Financial Group provides loans and ancillary financial services to startups, private equity, and venture capital firms. The bank has four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. In addition to providing loans to venture-capital-backed startups, the company invests in private equity and venture capital funds of funds. The bank operates throughout the United States and maintains offices in Canada, the United Kingdom, Israel, China, India, Germany, Denmark, and Ireland.

SVB Financial Group (BSP:S1IV34) Headlines

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