First Financial Holding Co (TPE:2892) GF Value Rank : 9 (As of May. 22, 2024)

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What is First Financial Holding Co GF Value Rank?

First Financial Holding Co has the GF Value Rank of 9.

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 First Financial Holding Co's GF Value Rank

For the Banks - Regional subindustry, First Financial Holding 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.

First Financial Holding Co's GF Value Rank Distribution in the Banks Industry

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

* The bar in red indicates where First Financial Holding Co's GF Value Rank falls into.

First Financial Holding Co GF Value Rank Related Terms

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First Financial Holding Co (TPE:2892) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » First Financial Holding Co Ltd (TPE:2892) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 30, Chongqing South Road, 18th Floor, Section 1, Taipei, TWN, 100

Website

https://www.firstholding.com.tw

First Financial Holding Co Ltd is a financial services holding company that consists of various subsidiaries. Most of the company's activities are overwhelmingly concentrated in Taiwan. Its largest revenue-contributing subsidiary, First Bank, derives most of its net revenue from net interest income. First Bank's expansion strategy targets China and Southeast Asia, as well as developed economies across the globe. First Bank emphasizes distribution chain financing and has adjusted its loan portfolio away from capital-intensive lending, together with a focus on fee-based businesses. The company also engages in asset management, securities trading, brokerage services, insurance, venture capital, consulting, and distressed asset investing.

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