Guangdong Bobaolon Co (SZSE:002776) GF Value Rank : 2 (As of May. 18, 2024)

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What is Guangdong Bobaolon Co GF Value Rank?

Guangdong Bobaolon 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 Guangdong Bobaolon Co's GF Value Rank

For the Apparel Manufacturing subindustry, Guangdong Bobaolon 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.

Guangdong Bobaolon Co's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Guangdong Bobaolon Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Guangdong Bobaolon Co's GF Value Rank falls into.

Guangdong Bobaolon Co GF Value Rank Related Terms

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Guangdong Bobaolon Co (SZSE:002776) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Guangdong Bobaolon Co Ltd (SZSE:002776) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

West of Dade North Road, Liusha East Street, South of Xinmei Road, Xibaibaolong Creative Park, Guangdong Province, Puning, CHN, 515300

Website

http://www.bobaolon.net

Guangdong Bobaolon Co Ltd is an apparel manufacturing company. The Company is engaged in designing and manufacturing apparel by providing one-stop design service for branded clothing companies. The company provides training and education support to designers; and develops and produces fabrics. It offers its products through online channels, showrooms, and partners. The company has more than 1,700 design copyrights, 7 invention patents, 9 utility model patents, 3 software copyrights, 6 provincial high-tech products, and 2 provincial-level scientific and technological achievements.

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