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China Information Technology Development (HKSE:08178) GF Value Rank : 3 (As of May. 26, 2024)


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What is China Information Technology Development GF Value Rank?

China Information Technology Development 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 China Information Technology Development's GF Value Rank

For the Information Technology Services subindustry, China Information Technology Development'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 Information Technology Development's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, China Information Technology Development's GF Value Rank distribution charts can be found below:

* The bar in red indicates where China Information Technology Development's GF Value Rank falls into.



China Information Technology Development GF Value Rank Related Terms

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China Information Technology Development (HKSE:08178) Business Description

Traded in Other Exchanges
N/A
Address
392 Kwun Tong Road, Unit 3308, 33rd Floor, Millennium City 6, Kwun Tong, Hong Kong, HKG
China Information Technology Development Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the provision of system integration and related support services, provision of IT infrastructure solutions and maintenance services, money lending, and securities trading. It operates in the segments of Provision of IT solutions and maintenance, Money lending, Securities trading, and Rental of properties. It generates key revenue from the IT solutions and maintenance segment. It has a business presence in the PRC and Hong Kong, of which a majority of revenue is derived from Hong Kong.
Executives
Zhang Rong 2101 Beneficial owner
Lee Ying Chiu Herbert 2201 Interest of corporation controlled by you
Choi Hing Lin Lori 2202 Interest of your spouse
Lam Shu Chung 2101 Beneficial owner
Tang Keung 2101 Beneficial owner
Valuable Fortune Limited 2101 Beneficial owner
Lee Yat Lung Andrew 2201 Interest of corporation controlled by you

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