Guangzhou Zhiguang Electric Co (SZSE:002169) GF Value Rank : 2 (As of May. 29, 2024)

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What is Guangzhou Zhiguang Electric Co GF Value Rank?

Guangzhou Zhiguang Electric Co 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 Guangzhou Zhiguang Electric Co's GF Value Rank

For the Electronic Components subindustry, Guangzhou Zhiguang Electric Co'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.

Guangzhou Zhiguang Electric Co's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Guangzhou Zhiguang Electric Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Guangzhou Zhiguang Electric Co's GF Value Rank falls into.

Guangzhou Zhiguang Electric Co GF Value Rank Related Terms

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Guangzhou Zhiguang Electric Co (SZSE:002169) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Guangzhou Zhiguang Electric Co Ltd (SZSE:002169) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 248 Wushan Road, Jinshan Building South Block, 3F, Tianhe District, Guangzhou, Guangdong, CHN, 510640

Website

http://www.gzzg.com.cn

Guangzhou Zhiguang Electric Co Ltd is an integrated energy technology and service provider. It is engaged in the research, development, design, manufacture, and sale of electrical control equipment. Its products and services include motor control, power control, power transmission, energy utilization and energy conversion. In addition, the company also provides integrated energy services and related technology.

Executives

Jiang Xin Yu	Executives
Lu Xiao Yang	Supervisors
Rui Dong Yang	Director
Han Wen	Supervisors
Zheng Xiao Jun	Director
Wang Sui Feng	Executives
Li Yong Xi	Director
Qiu Hua	Supervisors
Liu Yong	Supervisors
Yang Xu	Executives
Wang Wei Hong	Executives

Guangzhou Zhiguang Electric Co (SZSE:002169) Headlines

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