Ninetowns Internet Technology Group Co (FRA:NQU) GF Value Rank : 0 (As of Jun. 19, 2024)

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What is Ninetowns Internet Technology Group Co GF Value Rank?

Ninetowns Internet Technology Group 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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Ninetowns Internet Technology Group Co (FRA:NQU) Business Description

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http://www.ninetowns.com

Ninetowns Internet Technology Group Co Ltd was incorporated in the Cayman Islands as a limited liability company on February 8, 2002 as "Ninetowns Digital World Trade Technology Holdings Limited". It changed its name to "Ninetowns Digital World Trade One Technology Holdings Limited" on June 14, 2002 and then to "Ninetowns Digital World Trade Holdings Limited" on April 7, 2003. The Company is a PRC software company that enables enterprises and trade-related PRC government agencies to streamline the import/export process in China. Its enterprise software products consist of standardized, easy-to-install applications that simplify the declaration and approval process for international trade enterprises in China. Its enterprise software automates and facilitates the processing of the required import/export declarations and approvals in a cost-efficient, user-friendly and legally-compliant manner over the Internet, utilizing an electronic infrastructure it helped build that links together numerous branch offices of the PRC Inspections Administration. Through its software development services, it assists in the development and maintenance of the software systems used to process electronic filings by the PRC Inspections Administration and the data exchange platforms which serve as the interface between such systems and its enterprise software users.

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