Gansu Longshenrongfa Pharmaceutical Industry Co (SZSE:300534) GF Value Rank : 2 (As of May. 27, 2024)

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What is Gansu Longshenrongfa Pharmaceutical Industry Co GF Value Rank?

Gansu Longshenrongfa Pharmaceutical Industry 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 Gansu Longshenrongfa Pharmaceutical Industry Co's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Gansu Longshenrongfa Pharmaceutical Industry 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.

Gansu Longshenrongfa Pharmaceutical Industry Co's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Gansu Longshenrongfa Pharmaceutical Industry Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Gansu Longshenrongfa Pharmaceutical Industry Co's GF Value Rank falls into.

Gansu Longshenrongfa Pharmaceutical Industry Co GF Value Rank Related Terms

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

Gansu Longshenrongfa Pharmaceutical Industry Co (SZSE:300534) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Gansu Longshenrongfa Pharmaceutical Industry Co Ltd (SZSE:300534) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 10, Defence Road, Dingyuan Town, Gansu Province, Lanzhou, CHN, 730101

Website

http://www.lsrfzy.com

Gansu Longshenrongfa Pharmaceutical Industry Co Ltd is mainly engaged in the pharmaceutical business. It is engaged in the research and development of new drugs, traditional Chinese medicine processing and production. Its products portfolio includes Yuan Hu Zhitong Dripping Pills, Qiwei Wenyang Capsule and Xiaoshuan Tongluo Tablets. Its products are used to adjust gas, promote blood circulation, relieve pain, relieve cough, eliminate phlegm, relieve asthma, clear heat, and dispel dampness, among others.

Executives

Chen Yao Wu	Executives
Zhang Jin De	Director
Zhang Fan	Executives
Kong Jian Feng	Executives
Yue Qing Xin	Supervisors
Kang Yong Hong	Executives

Gansu Longshenrongfa Pharmaceutical Industry Co (SZSE:300534) Headlines

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