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Shandong Wohua Pharmaceutical Co (SZSE:002107) GF Value Rank : 10 (As of Jun. 05, 2024)


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What is Shandong Wohua Pharmaceutical Co GF Value Rank?

Shandong Wohua Pharmaceutical Co has the GF Value Rank of 10.

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 Shandong Wohua Pharmaceutical Co's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Wohua Pharmaceutical 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.


Shandong Wohua Pharmaceutical Co's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shandong Wohua Pharmaceutical Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Shandong Wohua Pharmaceutical Co's GF Value Rank falls into.



Shandong Wohua Pharmaceutical Co GF Value Rank Related Terms

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Shandong Wohua Pharmaceutical Co (SZSE:002107) Business Description

Traded in Other Exchanges
N/A
Address
Fushou East Street, Chuangye Building, 2F, New and High-Tech Industrial Development Zone, Huaifang, Shandong, CHN, 261011
Shandong Wohua Pharmaceutical Co Ltd is a China-based company specializing in the field of cardio-cerebral vascular medicine. The company's main products consist of Xinkeshu tablets for the treatment of coronary heart disease; Naoxueshu oral liquid, promoting blood circulation by removing blood stasis; Hupo Xiaoshi granules for the treatment of urethral calculus, and Yuandu granules for the treatment of influenza, among others.
Executives
Zhao Jun Director
Liu Wen Yi Supervisors
Zhang Fa Zhong Supervisors
Zhang Ge Director
Ma Xing Chen Supervisors
Tian Kai Ji Directors, executives
Kong Xian Jun Supervisors

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