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Hold-Key Electric Wire & Cable Co (TPE:1618) GF Value Rank : 3 (As of May. 21, 2024)


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What is Hold-Key Electric Wire & Cable Co GF Value Rank?

Hold-Key Electric Wire & Cable Co has the GF Value Rank of 3.

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 Hold-Key Electric Wire & Cable Co's GF Value Rank

For the Electronics & Computer Distribution subindustry, Hold-Key Electric Wire & Cable 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.


Hold-Key Electric Wire & Cable Co's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Hold-Key Electric Wire & Cable Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hold-Key Electric Wire & Cable Co's GF Value Rank falls into.



Hold-Key Electric Wire & Cable Co GF Value Rank Related Terms

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Hold-Key Electric Wire & Cable Co (TPE:1618) Business Description

Traded in Other Exchanges
N/A
Address
Fuxing South Road, 3rd Floor, No. 36-9, Section 1, Zhongshan District, Taipei City, TWN, 104
Hold-Key Electric Wire & Cable Co Ltd is engaged in the manufacture and sells XLPE power cables, electric cables, aluminum cables, rubber cables, communication cables, fiber optic cables, LAN cables, cable accessories, etc., and is also engaged in the import and export of the aforementioned products and lease of properties. The company has two operating segments; the Wires and Cables Segment, and the Others Segment. The Group mainly operates in Taiwan, Europe, USA, and Asia. it derives a majority of its revenue from Taiwan.

Hold-Key Electric Wire & Cable Co (TPE:1618) Headlines

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