ERIE (Erie Indemnity Co) GF Value Rank : 3 (As of Oct. 31, 2024)

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What is Erie Indemnity Co GF Value Rank?

Erie Indemnity Co 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 Erie Indemnity Co's GF Value Rank

For the Insurance Brokers subindustry, Erie Indemnity Co'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.

Erie Indemnity Co's GF Value Rank Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Erie Indemnity Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Erie Indemnity Co's GF Value Rank falls into.

Erie Indemnity Co GF Value Rank Related Terms

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Erie Indemnity Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Erie Indemnity Co (NAS:ERIE) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EI2:Germany EI2:Germany

Address

100 Erie Insurance Place, Erie, PA, USA, 16530

Website

https://www.erieinsurance.com

Erie Indemnity Co mainly performs services on behalf of the Erie Insurance Exchange relating to sales, underwriting, and issuance of policies. Erie Indemnity's results are tied to the performance of the Insurance Exchange, which principally provides automobile and homeowners insurance for individuals, along with multiperil, workers' compensation, and commercial automobile insurance for its commercial clients. Erie Indemnity's management fee is typically 25% of the Exchange's premiums, and this accounts for all of Erie Indemnity's revenue. The company operates exclusively in the United States.

Executives

Charles Scott Hartz	director	TWO BALA PLAZA, SUITE 300, BALA CYNWYD PA 19004-1573
Borneman J Ralph Jr	director	NATIONAL PENN BANCSHARES INC, PHILADELPHIA & READING AVENUES, BOYERTOWN PA 19512
Marc Cipriani	officer: Senior Vice President	100 ERIE INSURANCE PLACE, ERIE PA 16530
Sean Dugan	officer: Executive Vice President	100 ERIE INSURANCE PLACE, ERIE PA 16530
Parthasarathy Srinivasa	officer: EVP, Chief Information Officer	100 ERIE INSURANCE PLACE, ERIE PA 16530
Jorie L Novacek	officer: SVP, Controller	100 ERIE INSURANCE PLACE, ERIE PA 16530
Thomas B Hagen	director	230 WEST 6TH STREET, ERIE PA 16507-1319
Eugene C Connell	director	785 HUNTINGTON DRIVE, ERIE PA 16505
Elizabeth A Vorsheck	director, 10 percent owner	6252 COMMERCIAL WAY PMB 140, BROOKSVILLE FL 34613
Brian W. Bolash	officer: SVP,Secretary,General Counsel	100 ERIE INSURANCE PLACE, ERIE PA 16530
Hudson Brian Arden Sr.	director	2407 PARK DRIVE, HARRISBURG PA 17110
Louis F Colaizzo	officer: Senior Vice President	100 ERIE INSURANCE PLACE, ERIE PA 16530
Salvatore Correnti	director	8518 SOUTHFIELDS CIRCLE, LUTHERVILLE MD 21093
Timothy G Necastro	officer: President & CEO, Designate	100 ERIE INSURANCE PL, ERIE PA 16530
Luann Datesh	director	333 OAK FOREST DRIVE, PITTSBURGH PA 15216