Huishang Bank (HKSE:03698) GF Value Rank : 5 (As of May. 06, 2024)

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What is Huishang Bank GF Value Rank?

Huishang Bank has the GF Value Rank of 5.

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 Huishang Bank's GF Value Rank

For the Banks - Regional subindustry, Huishang Bank'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.

Huishang Bank's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Huishang Bank's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Huishang Bank's GF Value Rank falls into.

Huishang Bank GF Value Rank Related Terms

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Huishang Bank (HKSE:03698) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Huishang Bank Corp Ltd (HKSE:03698) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 1699 Yungu Road, Huishang Bank Building, Anhui Province, Hefei, CHN, 230092

Website

http://www.hsbank.com.cn

Huishang Bank Corp Ltd is a regional commercial bank in China. The company operates through four main business segments: corporate banking, retail banking, treasury, and others. The corporate banking segment provides financial services to corporate customers, government authorities, and financial institutions, such as current accounts, deposits, overdrafts, loans, and wealth management products. The retail banking segment provides services to retail customers, such as savings deposits, personal loans, and advances. The treasury segment provides securities investment and money market and repurchase transactions. The other segment includes investment holding and other miscellaneous activities. The company operates in China and earns the majority of its revenue in the Anhui Province.

Huishang Bank (HKSE:03698) Headlines

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