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Arrail Group (HKSE:06639) GF Value Rank : 0 (As of Jun. 07, 2024)


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What is Arrail Group GF Value Rank?

Arrail 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.


Arrail Group GF Value Rank Related Terms

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Arrail Group (HKSE:06639) Business Description

Traded in Other Exchanges
Address
No. 18, Ziyue Road, 6th Floor, Building 11, Chaolai Science Park, Chaoyang District, Beijing, CHN
Arrail Group Ltd is a dental services provider in the premium private dental service market in China.
Executives
Zou Qifang
The Goldman Sachs Group, Inc.
Arrail Sunshine Holdings Limited 2301 Trustee
Kastle Limited 2301 Trustee
Total Success Investment Ltd. 2101 Beneficial owner
Zhang Zheng 2201 Interest of corporation controlled by you
Young Roger K C 2201 Interest of corporation controlled by you
Empire Choice International Limited 2501 Other
Buckley John Paul 2201 Interest of corporation controlled by you
19 Growth Capital Fund Lp 2102 Investment manager
19 Growth Capital Fund Gp Inc. 2102 Investment manager
Rise Day Holdings Limited
United Culture Assets Limited
Qiming Gp Ii, L.p. 2201 Interest of corporation controlled by you
Kpcb China Associates Ltd 2201 Interest of corporation controlled by you

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