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Chengdu Huasun Technology Group (SZSE:000790) GF Value Rank : 7 (As of May. 27, 2024)


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What is Chengdu Huasun Technology Group GF Value Rank?

Chengdu Huasun Technology Group has the GF Value Rank of 7.

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 Chengdu Huasun Technology Group's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Chengdu Huasun Technology Group'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.


Chengdu Huasun Technology Group's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Chengdu Huasun Technology Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Chengdu Huasun Technology Group's GF Value Rank falls into.



Chengdu Huasun Technology Group GF Value Rank Related Terms

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Chengdu Huasun Technology Group (SZSE:000790) Business Description

Traded in Other Exchanges
N/A
Address
1168 Fuxin Avenue, High-tech Zone (West District), No. 101, 1st Floor, Building 2, Sichuan, Chengdu, CHN, 611731
Chengdu Huasun Technology Group Inc Ltd, formerly Chengdu Taihe Health Technology Group Inc Ltd is engaged in the production and distribution of traditional Chinese medicines and chemical drugs in China. It is also involved in veterinary drugs, biological vaccines, and modern steel products.
Executives
Huang Xue Director
Wang Ren Guo Directors, executives
Ye Jing Executives
Jiang Li Executives
Bo Jian Ping Executives
Wang Tian Xiang Executives
Tang Ji Ying Executives
Li Jian Hua Executives
Wan Fang Executives
Wei Yi Guo Executives
Chen Zhong Qiao Director

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