TCTM Kids IT Education (TCTM Kids IT Education) GF Value Rank : 10 (As of May. 05, 2024)

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What is TCTM Kids IT Education GF Value Rank?

TCTM Kids IT Education 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 TCTM Kids IT Education's GF Value Rank

For the Education & Training Services subindustry, TCTM Kids IT Education'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.

TCTM Kids IT Education's GF Value Rank Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, TCTM Kids IT Education's GF Value Rank distribution charts can be found below:

* The bar in red indicates where TCTM Kids IT Education's GF Value Rank falls into.

TCTM Kids IT Education GF Value Rank Related Terms

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TCTM Kids IT Education (TCTM Kids IT Education) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » TCTM Kids IT Education Inc (NAS:TCTM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

0T8B:Germany

Address

No. 1 Andingmenwai Street, 6th Floor, Litchi Tower, Chaoyang District, Beijing, CHN, 100011

Website

https://www.tedu.cn

Tarena International Inc is engaged in providing professional education services including professional information technology (IT) training courses and non-IT training courses. It offers K-12 education services in China. The company operates in two reportable segments namely IT Professional Education and IT-focused Supplementary STEAM Education Services. The majority of the revenue is generated from the IT-focused Supplementary STEAM Education Services segment. The service provides by the company includes featuring course content, examinations, student and teaching staff interaction tools, student management tools, and an online student community. For adult students, Their education platform combines live distance instruction, classroom-based tutoring, and online learning modules.