ABC arbitrage (CHIX:ABCAP) GF Value Rank : 5 (As of May. 25, 2024)

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What is ABC arbitrage GF Value Rank?

ABC arbitrage has the GF Value Rank of 5.

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 ABC arbitrage's GF Value Rank

For the Asset Management subindustry, ABC arbitrage'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.

ABC arbitrage's GF Value Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, ABC arbitrage's GF Value Rank distribution charts can be found below:

* The bar in red indicates where ABC arbitrage's GF Value Rank falls into.

ABC arbitrage GF Value Rank Related Terms

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ABC arbitrage (CHIX:ABCAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » ABC arbitrage SA (CHIX:ABCAp) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ABCA:France 9BA:Germany

Address

18 rue du Quatre Septembre, Paris, FRA, 75002

Website

https://www.abc-arbitrage.com

ABC arbitrage SA is a France-based company engaged in the design of arbitration strategies in European and American financial markets. The group conducts two types of arbitrage strategies, including arbitrage without market risks, which exploits opportunities that are independent of directional or event risks, and arbitrage with market risks, where various risks involved are systematically identified and hedged using appropriate instruments. ABC Arbitrage also provides asset management services to institutional clients and advisory services for third party institutional clients or qualified investors. The company's funds are managed by ABC arbitrage Asset Management.

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