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CNT Group (HKSE:00701) GF Value Rank : 0 (As of Jun. 13, 2024)


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What is CNT Group GF Value Rank?

CNT Group 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.


CNT Group GF Value Rank Related Terms

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CNT Group (HKSE:00701) Business Description

Traded in Other Exchanges
N/A
Address
338 Hennessy Road, 28th Floor, Unit E, CNT Tower, Wanchai, Hong Kong, HKG
CNT Group Ltd is principally engaged in the manufacture and sale of paint products, property investment, iron and steel trading, and investment holding activities. The company operates through the business segments are, The Paint products segment engages in the manufacture and sale of paint products. The Property investment segment comprises the investment in residential, commercial and industrial premises for their rental income potential and development and sale of properties. The Iron and steel trading segment comprises the trading of iron and steel products and related investments. The Hotel business segment, and the other segment comprises, principally, investment holding and securities trading. Majority of the company's revenue comes from the Paint products segment in Mainland China.
Executives
Prime Surplus Limited 2101 Beneficial owner
Ho Mei Po, Mabel 2202 Interest of your spouse
Tsui Ho Chuen, Philip 2201 Interest of corporation controlled by you
Polygold Holdings Limited 2201 Interest of corporation controlled by you
Rapid Growth Ltd. 2301 Trustee
Xie Jian Ming 2201 Interest of corporation controlled by you

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