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Guodian Technology & Environment Group (HKSE:01296) GF Value Rank : 0 (As of May. 27, 2024)


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What is Guodian Technology & Environment Group GF Value Rank?

Guodian Technology & Environment Group 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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Guodian Technology & Environment Group (HKSE:01296) Business Description

Traded in Other Exchanges
N/A
Address
W.4th Ring Middle Road, Suite 1101, 11th Floor, Building 1, Yard 16, Haidian District, Beijing, CHN, 100039
Guodian Technology & Environment Group Corp Ltd together with its subsidiaries offers flagship platform for environmental protection and energy conservation solutions businesses. It operates in the following segments: Environmental Protection; Energy Conservation Solutions; Wind Power Products and Services; and All Others. The Environmental Protection segment offers environmental protection products and services which mainly consist of sulphur oxide, nitrogen oxide control technologies, rental of desulphurization and denitrification facilities. Energy Conservation Solutions segment which derives the majority of revenue covers energy-saving products and services. Wind Power Products and Services segment manufactures and sells wind turbine parts and components.

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