GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » China Pharma Holding Inc (STU:XQJ0) » Definitions » GF Value Rank

China Pharma Holding (STU:XQJ0) GF Value Rank : 0 (As of Jun. 07, 2024)


View and export this data going back to 2009. Start your Free Trial

What is China Pharma Holding GF Value Rank?

China Pharma Holding 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.


China Pharma Holding GF Value Rank Related Terms

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


China Pharma Holding (STU:XQJ0) Business Description

Traded in Other Exchanges
Address
Second Floor, No. 17, Jinpan Road, Hainan Province, Haikou, CHN, 570216
China Pharma Holding Inc is a drug manufacturing company. It is mainly engaged in the development, manufacture, and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the People's Republic of China. The company mainly manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The product line of the company includes cefaclor dispersible tablets, clarithromycin granules, roxithromycin dispersible tablets, andrographolide tablets, ozagrel sodium for injection, gastrodin injection, and others.

China Pharma Holding (STU:XQJ0) Headlines

No Headlines