Launch Tech Co (HKSE:02488) GF Value Rank : 1 (As of Dec. 11, 2024)

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What is Launch Tech Co GF Value Rank?

Launch Tech Co has the GF Value Rank of 1.

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 Launch Tech Co's GF Value Rank

For the Auto Parts subindustry, Launch Tech Co'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.

Launch Tech Co's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Launch Tech Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Launch Tech Co's GF Value Rank falls into.

Launch Tech Co GF Value Rank Related Terms

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Launch Tech Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Launch Tech Co Ltd (HKSE:02488) » Definitions » GF Value Rank

Traded in Other Exchanges

LAN:Germany

Address

Launch Industrial Park, North of Wuhe Road, Banxuegang, Longgang District, Shenzhen, CHN, 518129

Website

https://www.cnlaunch.com

Launch Tech Co Ltd principally engages in the provision of products and services serving the automotive aftermarket and the automobile industry mainly in the People's Republic of China and certain overseas countries. The company operates its business through three reportable segments. The Automotive Diagnosis segment generates the majority of the earnings for the company. It is involved in the research and development, production and sales of automotive diagnostic and inspection products. The Lift segment is engaged in the research and development, production and sales of machinery products in the automotive aftermarket. The Overseas Sales segment develops and maintains European distributors and customers.

Executives

Cao Guanye

2101 Beneficial owner

Launch Tech Co Headlines

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