Grupo Security (XSGO:SECURITY) GF Value Rank : 3 (As of May. 16, 2024)

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What is Grupo Security GF Value Rank?

Grupo Security 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 Grupo Security's GF Value Rank

For the Banks - Regional subindustry, Grupo Security'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.

Grupo Security's GF Value Rank Distribution in the Banks Industry

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

* The bar in red indicates where Grupo Security's GF Value Rank falls into.

Grupo Security GF Value Rank Related Terms

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Grupo Security (XSGO:SECURITY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Grupo Security SA (XSGO:SECURITY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Apoquindo 3150, Piso 14, Las Condes, Santiago, CHL

Website

http://www.security.cl

Grupo Security SA is a Chile-based diversified financial company. It offers banking, insurance, asset management, and other services to individuals and large and midsize companies. Grupo Security has four main business segments: Banco Security & Factoring Security for lending, Inversiones Security for asset management and stock brokerage, Vida Security for insurance, and Travel Security & Inmobiliaria Security for nonfinancial products and services. Banco Security & Factoring Security is focused on commercial banking but also offers treasury and other services. Inversiones Security provides advisory services to help private, corporate, and institutional customers manage assets. Vida Security provides traditional life insurance and annuities.

Grupo Security (XSGO:SECURITY) Headlines

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