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China Finance Investment Holdings (HKSE:00875) GF Value Rank : 4 (As of May. 25, 2024)


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What is China Finance Investment Holdings GF Value Rank?

China Finance Investment Holdings has the GF Value Rank of 4.

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 China Finance Investment Holdings's GF Value Rank

For the Farm Products subindustry, China Finance Investment Holdings'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.


China Finance Investment Holdings's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Finance Investment Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where China Finance Investment Holdings's GF Value Rank falls into.



China Finance Investment Holdings GF Value Rank Related Terms

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China Finance Investment Holdings (HKSE:00875) Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Salisbury Road, Unit 32A, 15th Floor, Star House, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
China Finance Investment Holdings Ltd is engaged in growing of agricultural produce, trading of agricultural and meat produce, poultry, seafood and prepared food in the PRC. The company has only one operating and reportable segment, being agricultural and meat business. The company earns majority of its revenue from the PRC.
Executives
Lin Yuhao 2101 Beneficial owner
Sino Richest Investment Holdings Limited
Hui Jia Investments Limited 2101 Beneficial owner
Chen Huifang 2201 Interest of corporation controlled by you

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