Qingdao Topscomm Communication (SHSE:603421) GF Value Rank : 2 (As of May. 28, 2024)

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What is Qingdao Topscomm Communication GF Value Rank?

Qingdao Topscomm Communication 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 Qingdao Topscomm Communication's GF Value Rank

For the Scientific & Technical Instruments subindustry, Qingdao Topscomm Communication'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.

Qingdao Topscomm Communication's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Qingdao Topscomm Communication's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Qingdao Topscomm Communication's GF Value Rank falls into.

Qingdao Topscomm Communication GF Value Rank Related Terms

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Qingdao Topscomm Communication (SHSE:603421) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Qingdao Topscomm Communication Inc (SHSE:603421) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 288 Ningxia Road, 5th Floor, No. 6 Building, Qingdao Software Park, Shinan District, Qingdao City, CHN, 266024

Website

http://www.topscomm.com

Qingdao Topscomm Communication Inc designs, researches and develops, manufactures, and sells smart products for electric power and fire protection in China. It also engages in the research and development of power line carrier communication chips and fieldbus communication chips. Its products include smart energy meters, such as smart prepayment and advanced metering infrastructure (AMI), power line carrier communication system; chips; terminal collecting device such as concentrator and state grid concentrator; and intelligent indoor terminal. It also provides AMI, prepayment vending, water/gas/heat and electricity meter AMR/AMI, distribution automation and management, and low and medium voltage PLC communication solutions.

Executives

Ge Jun	Directors, senior managers
Zhou Li Min	senior management
Fan Jian Hua	Directors, senior managers
Xu Rui	Supervisors
Bao Chun Xia	senior management
Xu Guang Yi	senior management

Qingdao Topscomm Communication (SHSE:603421) Headlines

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