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Xiangtan Electric Manufacturing Co (SHSE:600416) GF Value Rank : 4 (As of Dec. 13, 2024)


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What is Xiangtan Electric Manufacturing Co GF Value Rank?

Xiangtan Electric Manufacturing Co has the GF Value Rank of 4.

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 Xiangtan Electric Manufacturing Co's GF Value Rank

For the Specialty Industrial Machinery subindustry, Xiangtan Electric Manufacturing 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.


Xiangtan Electric Manufacturing Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Xiangtan Electric Manufacturing Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Xiangtan Electric Manufacturing Co's GF Value Rank falls into.



Xiangtan Electric Manufacturing Co GF Value Rank Related Terms

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Xiangtan Electric Manufacturing Co Business Description

Traded in Other Exchanges
N/A
Address
No. 302 Xiashesi Street, Xiangtan, Hunan, CHN, 411101
Xiangtan Electric Manufacturing Co Ltd is the backbone enterprise of China's electrical industry, the major technologies and equipment production. It is also involved in R&D and is the designated manufacturer of defense equipment.
Executives
Wang Lin Director
Zhao Wen Hong senior management
Zhong Xue Chao Supervisors
Liu Shao Cheng Supervisors
Yu Yuan Liang senior management
Yao Li Min senior management
Zhou Jian Xiong Director
Li Ji Ping Director
Su Ming senior management
Xiao Ren Zhang Supervisors
Liu Hai Qiang senior management
Liu Ning Xian Supervisors
Zhang Jian Wei Director
Zhao Yi Jun Director
Luo Jian Rong senior management

Xiangtan Electric Manufacturing Co Headlines

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