Digital China Group Co (SZSE:000034) GF Value Rank : 1 (As of Jun. 09, 2024)

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What is Digital China Group Co GF Value Rank?

Digital China Group Co has the GF Value Rank of 1.

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 Digital China Group Co's GF Value Rank

For the Information Technology Services subindustry, Digital China Group 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.

Digital China Group Co's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Digital China Group Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Digital China Group Co's GF Value Rank falls into.

Digital China Group Co GF Value Rank Related Terms

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Digital China Group Co (SZSE:000034) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Digital China Group Co Ltd (SZSE:000034) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 8 Kefa Road, Yuehai Street, Building E1, Floor 11, Building 1, Financial Base, Nanshan District, Guangdong Province, Shenzhen, CHN, 100085

Website

http://www.digitalchina.com

Digital China Group Co Ltd is a China-based integrated IT service provider. It is engaged in the business activity of providing services which include product marketing, capital logistics, localized technical support, large data services and cloud computing infrastructure.

Executives

Yang Ming Lang	Executives
Liu Xin	Secretary Dong
Lv Jing	Executives
Xin Xin	Director
Lu Ming	Executives
Chen Zhen Kun	Executives
Li Yan	Executives
Han Zhi Min	Executives
Ye Hai Qiang	Executives
Hao Jun Cheng	Executives
Zhou Li Da	Executives
Wang Xiao Yan	Director
Wu Hao	Executives
Tang Kai	Executives
Wang Ji Ye	Secretary Dong

Digital China Group Co (SZSE:000034) Headlines

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