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WMHW Holdings (HKSE:08217) GF Value Rank : 0 (As of Jun. 06, 2024)


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What is WMHW Holdings GF Value Rank?

WMHW Holdings 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.


WMHW Holdings GF Value Rank Related Terms

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WMHW Holdings (HKSE:08217) Business Description

Traded in Other Exchanges
N/A
Address
489 Hennessy Road, Unit 2202, 22nd Floor, Causeway Bay Plaza I, Causeway Bay, Hong Kong, HKG
WMHW Holdings Ltd Formerly Luen Wong Group Holdings Ltd is an investment holding company operating through its subsidiaries. It engages in the civil engineering construction industry in Hong Kong and undertakes contracts for various civil engineering construction projects some of which include the West Rail Line Viaduct, Route 9 Ngong Shuen Chau Viaduct, and Central Reclamation Phase III project, Tuen Mun Road, and Fanling Highway.
Executives
Lai Siu Kuen 2202 Interest of your spouse
Law Oi Ling 2202 Interest of your spouse
Wong Che Kwo 2201 Interest of corporation controlled by you
Wong Wing Wah 2201 Interest of corporation controlled by you

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