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China Natural Gas (China Natural Gas) GF Value Rank : 0 (As of Jun. 10, 2024)


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What is China Natural Gas GF Value Rank?

China Natural Gas has the GF Value Rank of 0.

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.


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China Natural Gas (China Natural Gas) Business Description

Traded in Other Exchanges
N/A
Address
35 Tang Yan Road, 19th Floor Building B, Van Metropolis, Hi-Tech Zone, Shaanxi Province, Xian, CHN, 710065
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.
Executives
Frank Waung director 72 GREAT HILLS RD., SHORT HILLS NJ 07078
Lawrence W. Leighton director TANG XING SHU MA BUILDING, SUITE 418, TANG XING ROAD, XIAN, SHAANXI PROVINCE F4 710065
Xiaogang Zhu officer: Chief Financial Officer SUITE 909, TOWER B, CHANG AN INTL BLDG, NO. 88 NAN GUAN ZHEN XIE, XI AN CITY, SHAN XI PROVINCE F4 710068

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