Lizhong Sitong Light Alloys Group Co (SZSE:300428) GF Value Rank : 8 (As of May. 16, 2024)

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What is Lizhong Sitong Light Alloys Group Co GF Value Rank?

Lizhong Sitong Light Alloys Group Co has the GF Value Rank of 8.

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 Lizhong Sitong Light Alloys Group Co's GF Value Rank

For the Aluminum subindustry, Lizhong Sitong Light Alloys Group 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.

Lizhong Sitong Light Alloys Group Co's GF Value Rank Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lizhong Sitong Light Alloys Group Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Lizhong Sitong Light Alloys Group Co's GF Value Rank falls into.

Lizhong Sitong Light Alloys Group Co GF Value Rank Related Terms

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

Lizhong Sitong Light Alloys Group Co (SZSE:300428) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lizhong Sitong Light Alloys Group Co Ltd (SZSE:300428) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 359, West Development Road, Qingyuan District, Baoding, CHN, 071100

Website

http://www.stnm.com.cn

Lizhong Sitong Light Alloys Group Co Ltd formerly Hebei Sitong New Metal Material Co Ltd is specialized in Research and Development, manufacturing and sales of functional intermediate alloys such as metal grain refinement, metallographic deterioration, element addition and metal purification. Its products include Aluminum base alloy, Magnesium based master alloy, Zinc-based intermediate alloy and Copper base alloy. Its main objective is to research and manufacture aluminum-based steel and aluminum-based copper materials, to promote the light weight of automobiles, rail transit, aerospace materials and the performance of electrical and electronic products.

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