Chang Hwa Commercial Bank (TPE:2801) GF Value Rank : 4 (As of May. 08, 2024)

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What is Chang Hwa Commercial Bank GF Value Rank?

Chang Hwa Commercial Bank has the GF Value Rank of 4.

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 Chang Hwa Commercial Bank's GF Value Rank

For the Banks - Regional subindustry, Chang Hwa Commercial Bank'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.

Chang Hwa Commercial Bank's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Chang Hwa Commercial Bank's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Chang Hwa Commercial Bank's GF Value Rank falls into.

Chang Hwa Commercial Bank GF Value Rank Related Terms

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

Chang Hwa Commercial Bank (TPE:2801) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Chang Hwa Commercial Bank Ltd (TPE:2801) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 38, Freedom Road, Section 2, Taichung, TWN

Website

https://www.bankchb.com

Chang Hwa Commercial Bank Ltd operates as a bank. It operates in segments namely Loans, Deposits and Remittances, Financial Instruments and Investments, Wealth Management, Subsidiaries and Oversea Branch, and others. It generates a majority of its revenue from the Loan segment. It offers services such as wealth management, personal cards, housing loans, credit loans, personal internet banking, commercial internet banking, and others.

Chang Hwa Commercial Bank (TPE:2801) Headlines

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