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Guangzhou Automobile Group Co (Guangzhou Automobile Group Co) GF Value Rank : 0 (As of Jun. 19, 2024)


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What is Guangzhou Automobile Group Co GF Value Rank?

Guangzhou Automobile 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.

Guangzhou Automobile Group Co GF Value Rank Related Terms

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Guangzhou Automobile Group Co (Guangzhou Automobile Group Co) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Guangzhou Automobile Group Co Ltd (OTCPK:GNZUF) » Definitions » GF Value Rank
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SHSE:601127 SZSE:000800 SHSE:600418 SZSE:000625 SHSE:600733 SHSE:603529 SHSE:600166 SHSE:601965 SZSE:000980 SHSE:601777 TSLA TSE:7203 SZSE:002594 XTER:MBG XTER:BMW STLA XTER:VOW3 MIL:RACE TSE:7267 F
Traded in Other Exchanges
02238:Hong Kong 02G:Germany 02G:Germany 601238:China
Address
18 Whitfield Road, Room 808, Citicorp Centre, Causeway Bay, Hong Kong, HKG
Website
https://www.gac.com.cn
Guangzhou Automobile Group Co Ltd is a state-controlled producer of passenger vehicles, motorcycles, and auto parts. The company's activities are broadly classified into two segments; The vehicles and related operations segment include the production and sale of a variety of passenger vehicles, commercial vehicles, automotive parts, and related operations, and the Others segment includes mainly the production and sale of motorcycles, automobile finance, and insurance, other financing services, and investing businesses. The firm's operations are spread across Mainland China and Hong Kong. Its vehicles segment generates a majority of the revenues for the company. Geographically, it derives a majority of its revenue from Mainland China.

Guangzhou Automobile Group Co (Guangzhou Automobile Group Co) Headlines