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Sailong Pharmaceutical Group Co (SZSE:002898) GF Value Rank : 8 (As of May. 16, 2024)


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What is Sailong Pharmaceutical Group Co GF Value Rank?

Sailong Pharmaceutical Group Co has the GF Value Rank of 8.

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 Sailong Pharmaceutical Group Co's GF Value Rank

For the Biotechnology subindustry, Sailong Pharmaceutical Group 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.


Sailong Pharmaceutical Group Co's GF Value Rank Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Sailong Pharmaceutical Group Co's GF Value Rank distribution charts can be found below:

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



Sailong Pharmaceutical Group Co GF Value Rank Related Terms

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Sailong Pharmaceutical Group Co (SZSE:002898) Business Description

Traded in Other Exchanges
N/A
Address
No. 47, Haibin South Road, 2nd Floor, Everbright International Trade Center, Guangdong Province, Zhuhai, CHN, 519015
Zhuhai Sailong Pharmaceutical Co Ltd is the pharmaceutical company. It is mainly engaged in the development, production, marketing and technical services of pharmaceuticals. The company's products are mainly concentrated in the fields of the nervous system, cardiovascular and digestive system. The product range includes monosialin tetrahexose ganglioside sodium injections, brain protein hydrolyzate for injections, clindamycin phosphate for injections, pantoprazole sodium for injections and milrinon injections, among others.

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