GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » 3SBio, Inc. (FRA:YFK) » Definitions » GF Value Rank

3SBio, (FRA:YFK) GF Value Rank : 0 (As of May. 16, 2024)


View and export this data going back to . Start your Free Trial

What is 3SBio, GF Value Rank?

3SBio, has the GF Value Rank of 0.

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.


3SBio, GF Value Rank Related Terms

Thank you for viewing the detailed overview of 3SBio,'s GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


3SBio, (FRA:YFK) Business Description

Traded in Other Exchanges
N/A
Address
3SBio Inc is engaged in the healthcare sector based in China. It is a pharmaceutical products company and its core activities pertain to developing, manufacturing and marketing biopharmaceuticals. Its portfolio of products comprises of TPIAO and Yisaipu. TPIAO is the only commercialized recombinant human thrombopoietin (rhTPO) product in the world and Yisaipu is a TNF inhibibator product and accounts for the major share in the pharmaceutical industry in China. Most of the company's activities are focused on China while having a minor footprint in a foreign land.

3SBio, (FRA:YFK) Headlines

No Headlines