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SGSG Science & Technology Co Zhuhai (SZSE:300561) GF Value Rank : 5 (As of May. 29, 2024)


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What is SGSG Science & Technology Co Zhuhai GF Value Rank?

SGSG Science & Technology Co Zhuhai has the GF Value Rank of 5.

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 SGSG Science & Technology Co Zhuhai's GF Value Rank

For the Software - Infrastructure subindustry, SGSG Science & Technology Co Zhuhai'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.


SGSG Science & Technology Co Zhuhai's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, SGSG Science & Technology Co Zhuhai's GF Value Rank distribution charts can be found below:

* The bar in red indicates where SGSG Science & Technology Co Zhuhai's GF Value Rank falls into.



SGSG Science & Technology Co Zhuhai GF Value Rank Related Terms

Thank you for viewing the detailed overview of SGSG Science & Technology Co Zhuhai's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


SGSG Science & Technology Co Zhuhai (SZSE:300561) Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Software Park Road, Convention and Exhibition Center, 3rd floor, No. 3, Zhuhai, CHN, 519085
SGSG Science & Technology Co Ltd Zhuhai is specializing in the research and development and sales of IoT security electronic information technology products. It provides professional solutions and services for operations management, risk control, network transformation and channel construction of financial industry customers, government departments, enterprises and institutions. The company's main products and solutions consist of financial AI solution, financial mobile industry solutions, smart bank (Dot) solution, bank vault and seal management solution, self-service equipment plus banknote management solution, and real logistics management solutions.
Executives
Chen Zhe Directors, executives
Ma Zheng Directors, executives
He Yan Securities Affairs Representative
Ma Xiao Li Executives
Cai Lin Sheng Secretary Dong
Luo Xiu Hong Supervisors

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