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Shenyang Cuihua Gold and Silver Jewelry Co (SZSE:002731) GF Value Rank : 8 (As of Jun. 01, 2024)


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What is Shenyang Cuihua Gold and Silver Jewelry Co GF Value Rank?

Shenyang Cuihua Gold and Silver Jewelry Co has the GF Value Rank of 8.

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 Shenyang Cuihua Gold and Silver Jewelry Co's GF Value Rank

For the Luxury Goods subindustry, Shenyang Cuihua Gold and Silver Jewelry 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.


Shenyang Cuihua Gold and Silver Jewelry Co's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Shenyang Cuihua Gold and Silver Jewelry Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Shenyang Cuihua Gold and Silver Jewelry Co's GF Value Rank falls into.



Shenyang Cuihua Gold and Silver Jewelry Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Shenyang Cuihua Gold and Silver Jewelry Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Shenyang Cuihua Gold and Silver Jewelry Co (SZSE:002731) Business Description

Traded in Other Exchanges
N/A
Address
Beishuncheng Road, No.72, Cuihua Lane, Dadong District, Shenyang, CHN
Shenyang Cuihua Gold and Silver Jewelry Co Ltd manufactures gold and silver jewelry. It is mainly engaged in the design, processing, wholesale and retail of jewelry. Its products are mainly gold jewelry, It is also engaged in jewelry such as platinum jewelry and inlaid jewelry. Its currently adopting a business model combining a direct store and a franchise chain. It has more than hundreds of physical stores in large, medium and small cities.
Executives
Li Yu Kun Director
Guo Yu Chun Directors, Directors, and Executives
Guo Ying Jie Director
Chai Gang Executives
Xu Hai Tong Independent director

Shenyang Cuihua Gold and Silver Jewelry Co (SZSE:002731) Headlines

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