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Guangdong Senssun Weighing Apparatus Group (SZSE:002870) GF Value Rank : 7 (As of May. 25, 2024)


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What is Guangdong Senssun Weighing Apparatus Group GF Value Rank?

Guangdong Senssun Weighing Apparatus Group has the GF Value Rank of 7.

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 Senssun Weighing Apparatus Group's GF Value Rank

For the Scientific & Technical Instruments subindustry, Guangdong Senssun Weighing Apparatus Group'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 Senssun Weighing Apparatus Group's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Guangdong Senssun Weighing Apparatus Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Guangdong Senssun Weighing Apparatus Group's GF Value Rank falls into.



Guangdong Senssun Weighing Apparatus Group GF Value Rank Related Terms

Thank you for viewing the detailed overview of Guangdong Senssun Weighing Apparatus Group's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Guangdong Senssun Weighing Apparatus Group (SZSE:002870) Business Description

Traded in Other Exchanges
N/A
Address
East of Qiwan Road,, Baishawan Industrial Park, East District, Guangdong Province, Zhongshan, CHN, 528403
Guangdong Senssun Weighing Apparatus Group Ltd is mainly engaged in the research and development, production and sales of household health (home scale) products, commercial weighing (commercial weighing) products and intelligent measuring products. It focuses on product that includes human scales, fat scales, kitchen scales, pocket scales, luggage scales and other smart household scales; Safety traceability scales, bar code scales, electronic price scales, electronic platform scales and other intelligent commercial scales.
Executives
Zhao Yu Kun Director
Liu Huan Guang Directors, executives

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