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Gstarsoft Co (SHSE:688657) GF Value Rank : 0 (As of May. 24, 2024)


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What is Gstarsoft Co GF Value Rank?

Gstarsoft Co 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.


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Gstarsoft Co (SHSE:688657) Business Description

Traded in Other Exchanges
N/A
Address
No. 286, Dongping Street, Suzhou Industrial Park, Jiangsu, Suzhou, CHN, 215123
Gstarsoft Co Ltd Is engaged in research & development, promotion and sales of CAD-related software. It provides users with Haochen CAD, Haochen 3D, Products such as Haochen CAD Viewer and related services surrounding the aforementioned products.
Executives
Lu Xiang Directors, senior managers, core technical personn
Li Zhang Chun Core technical personnel
Wang Wei Core technical personnel
Li Ming Jin Core technical personnel
Wu Hai Long Core technical personnel
Liang Jiang Directors, senior managers, core technical personn
Yu Huai Gu senior management
Deng Li Qun Senior management, core technical personnel
Huang Mei Yu senior management
Ding Guo Yun senior management
Liang Hai Xia senior management
Hu Li Xin Director
Pan Li Directors, senior managers, core technical personn

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