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Weibo (STU:2WB) GF Value Rank : 10 (As of Dec. 11, 2024)


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What is Weibo GF Value Rank?

Weibo has the GF Value Rank of 10.

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 Weibo's GF Value Rank

For the Internet Content & Information subindustry, Weibo'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.


Weibo's GF Value Rank Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Weibo's GF Value Rank distribution charts can be found below:

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



Weibo GF Value Rank Related Terms

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


Weibo Business Description

Traded in Other Exchanges
Address
No. 8 Xinyuan S. Road, 8th Floor, QIHAO Plaza, Chaoyang District, Beijing, CHN, 100027
Weibo Corp is a China-based company mainly engaged in the social media advertising business for people to create, discover and distribute content. The Company's activities include Advertising and Marketing, which mainly provides a full range of advertising customization and marketing solutions. The Value-added Services mainly provide services such as membership services on social platforms, online games, live broadcasts, social e-commerce, and others. The Company's main product is the social platform Weibo.

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