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Differ Group Auto (HKSE:06878) GF Value Rank : 2 (As of May. 28, 2024)


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What is Differ Group Auto GF Value Rank?

Differ Group Auto has the GF Value Rank of 2.

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 Differ Group Auto's GF Value Rank

For the Credit Services subindustry, Differ Group Auto'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.


Differ Group Auto's GF Value Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Differ Group Auto's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Differ Group Auto's GF Value Rank falls into.



Differ Group Auto GF Value Rank Related Terms

Thank you for viewing the detailed overview of Differ Group Auto's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Differ Group Auto (HKSE:06878) Business Description

Traded in Other Exchanges
N/A
Address
No. 503 Gaolin Middle Road, 33th Floor, Differ Fortune Centre, Huli District, Fujian Province, Xiamen, CHN
Differ Group Auto Ltd, formerly Differ Group Holding Co Ltd provides finance leases to corporate customers, which are mainly small and medium enterprises, incorporated and operating in Mainland China. The reportable segments of the Group are, Financial services segment includes the provision of guarantee services, express loan services, consultancy services, finance lease services, financial securities services, and assets management in the PRC and Hong Kong; Property development and investment segment includes property development projects and property investment activities in the PRC; Trading of commodities segment includes trading of commodities in the PRC; and Automobile e-commerce includes online e-commerce platform in the automobile industry in the PRC.
Executives
Expert Corporate Limited
Hong Mingxian
Shi Hongjiao
Tianjin Binhai Rural Commercial Bank Corporation 2106 Person having a security interest in shares
Ng Chi Chung 2201 Interest of corporation controlled by you
Ting Pui Shan 2202 Interest of your spouse
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Ever Ultimate Limited 2101 Beneficial owner
Huatai Securities Co., Ltd. 2201 Interest of corporation controlled by you

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