Hangzhou Huaguang Advanced Welding Materials Co (SHSE:688379) GF Value Rank : 4 (As of Jun. 22, 2024)

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What is Hangzhou Huaguang Advanced Welding Materials Co GF Value Rank?

Hangzhou Huaguang Advanced Welding Materials 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 Hangzhou Huaguang Advanced Welding Materials Co's GF Value Rank

For the Metal Fabrication subindustry, Hangzhou Huaguang Advanced Welding Materials 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.

Hangzhou Huaguang Advanced Welding Materials Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hangzhou Huaguang Advanced Welding Materials Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hangzhou Huaguang Advanced Welding Materials Co's GF Value Rank falls into.

Hangzhou Huaguang Advanced Welding Materials Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Hangzhou Huaguang Advanced Welding Materials Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Hangzhou Huaguang Advanced Welding Materials Co (SHSE:688379) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hangzhou Huaguang Advanced Welding Materials Co Ltd (SHSE:688379) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Building 3, No. 82, Qihang Road, Renhe Street, Yuhang District, Zhejiang Province, Hangzhou, CHN, 311107

Website

https://www.huaguangwelding.com

Hangzhou Huaguang Advanced Welding Materials Co Ltd is engaged in production and sales of brazing materials. The company specialises in the research and fabrication of a broad range of welding materials as well as providing the customers with total welding solutions. It produces copper-based and silver-based welding materials in the forms of rods, rings, wires, strips, foils, powder, paste, flux-cored and flux-coated with over 2,800 specifications. The products are widely applied to the industry of refrigeration, household appliances, machinery, electric appliances, aeronautics, petrochemical, automobiles, tools, hard alloys, measurements, new energy equipment, bathroom facilities, railroad systems, among others.

Executives

Fan Zhong Hua

Core technical personnel

Hangzhou Huaguang Advanced Welding Materials Co (SHSE:688379) Headlines

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