Japan Post Bank Co (TSE:7182) GF Value Rank : 5 (As of May. 25, 2024)

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What is Japan Post Bank Co GF Value Rank?

Japan Post Bank Co 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 Japan Post Bank Co's GF Value Rank

For the Banks - Regional subindustry, Japan Post Bank 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.

Japan Post Bank Co's GF Value Rank Distribution in the Banks Industry

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

* The bar in red indicates where Japan Post Bank Co's GF Value Rank falls into.

Japan Post Bank Co GF Value Rank Related Terms

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Japan Post Bank Co (TSE:7182) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Japan Post Bank Co Ltd (TSE:7182) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

JPSTF:USA JPPTY:USA 5JP:Germany

Address

1-3-2 Kasumigaseki, Chiyoda-ku, Tokyo, JPN, 100-8798

Website

http://www.jp-bank.japanpost.jp

Japan Post Bank is the successor of the postal-savings system dating to the Meiji era. It was partially privatized in 2015, when the government sold to the public an 11% stake in parent company Japan Post Holdings, which in turn sold 11% stakes in Japan Post Bank and Japan Post Insurance to the public. Japan Post Bank is now 64% owned by Japan Post Holdings, which is majority owned by the government. The law requires Japan Post Holdings to divest itself of Japan Post Bank eventually. Japan Post Bank has 235 direct branches and also accepts deposits and sells investment products at more than 24,000 post offices across the country through a sales-agency agreement with Japan Post (an unlisted subsidiary of Japan Post Holdings).

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