Guangzhou Grandbuy Co (SZSE:002187) GF Value Rank : 10 (As of May. 25, 2024)

View and export this data going back to 2007. Start your Free Trial

What is Guangzhou Grandbuy Co GF Value Rank?

Guangzhou Grandbuy Co has the GF Value Rank of 10.

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 Grandbuy Co's GF Value Rank

For the Department Stores subindustry, Guangzhou Grandbuy 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 Grandbuy Co's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Guangzhou Grandbuy Co's GF Value Rank distribution charts can be found below:

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

Guangzhou Grandbuy Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Guangzhou Grandbuy Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Guangzhou Grandbuy Co (SZSE:002187) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Guangzhou Grandbuy Co Ltd (SZSE:002187) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 12 Xihu Road, 11F, Guangzhou, Guangdong, CHN, 510030

Website

http://www.grandbuy.com.cn

Guangzhou Grandbuy Co Ltd operates department stores in China. The company has more than 30 stores, ranging from single department stores to department stores, shopping malls, supermarkets, electrical appliances, online shopping and other diversified developments.

Executives

Xian Jia Xiong

Director

Guangzhou Grandbuy Co (SZSE:002187) Headlines

No Headlines