Shenzhen Capstone Industrial Co (SZSE:000038) GF Value Rank : 2 (As of May. 29, 2024)

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What is Shenzhen Capstone Industrial Co GF Value Rank?

Shenzhen Capstone Industrial Co has the GF Value Rank of 2.

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 Shenzhen Capstone Industrial Co's GF Value Rank

For the Internet Content & Information subindustry, Shenzhen Capstone Industrial 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.

Shenzhen Capstone Industrial Co's GF Value Rank Distribution in the Interactive Media Industry

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

* The bar in red indicates where Shenzhen Capstone Industrial Co's GF Value Rank falls into.

Shenzhen Capstone Industrial Co GF Value Rank Related Terms

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Shenzhen Capstone Industrial Co (SZSE:000038) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Shenzhen Capstone Industrial Co Ltd (SZSE:000038) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

6B2 Building 1, Dushi Yangguang Mingyuan, Futian District, Shenzhen, Guangdong, CHN, 518000

Website

http://www.chinadatong.com

Shenzhen Capstone Industrial Co Ltd is engaged in developing the internet industry and is engaged in integrating technology with new media communication, financial services, big data services, digital entertainment, and an internet of things.

Executives

Wang Wan Hong	Supervisors
Shi Li Jun	Director
Huang Wei Hua	Executives
Cao Jian Fa	Director
Hao Liang	Directors, executives

Shenzhen Capstone Industrial Co (SZSE:000038) Headlines

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