Euro Tech Holdings Co (Euro Tech Holdings Co) GF Value Rank : 1 (As of Apr. 30, 2024)

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What is Euro Tech Holdings Co GF Value Rank?

Euro Tech Holdings Co has the GF Value Rank of 1.

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 Euro Tech Holdings Co's GF Value Rank

For the Pollution & Treatment Controls subindustry, Euro Tech Holdings 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.

Euro Tech Holdings Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Euro Tech Holdings Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Euro Tech Holdings Co's GF Value Rank falls into.

Euro Tech Holdings Co GF Value Rank Related Terms

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Euro Tech Holdings Co (Euro Tech Holdings Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Euro Tech Holdings Co Ltd (NAS:CLWT) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

65 Wong Chuk Hong Road, Unit D, 18th Floor, Room C & D, Gee Chang Hong Centre, Hong Kong, HKG

Website

https://www.euro-tech.com

Euro Tech Holdings Co Ltd is a distributor and manufacturer of technology instruments as well as an environmental engineering services provider. It is engaged in the marketing and trading of water and wastewater related process control, analytical and testing instruments, disinfection equipment, supplies, and related automation systems. There are two operating segments of the company. The Trading and manufacturing segment, which is the key revenue driver, includes distribution of water treatment equipment, laboratory instruments, analyzers, test kits, and related supplies and power generation equipment. The Engineering segment includes water and waste-water treatment engineering and air pollution control business. The majority of the revenue is generated from Hong Kong.