Hefei Lifeon Pharmaceutical Co (SZSE:003020) GF Value Rank : 1 (As of Jun. 24, 2024)

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What is Hefei Lifeon Pharmaceutical Co GF Value Rank?

Hefei Lifeon Pharmaceutical 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 Hefei Lifeon Pharmaceutical Co's GF Value Rank

For the Biotechnology subindustry, Hefei Lifeon Pharmaceutical 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.

Hefei Lifeon Pharmaceutical Co's GF Value Rank Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Hefei Lifeon Pharmaceutical Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hefei Lifeon Pharmaceutical Co's GF Value Rank falls into.

Hefei Lifeon Pharmaceutical Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Hefei Lifeon Pharmaceutical Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Hefei Lifeon Pharmaceutical Co (SZSE:003020) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Hefei Lifeon Pharmaceutical Co Ltd (SZSE:003020) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.669, Changjiang West Road, Lifang Factory, Anhui Province, Hefei, CHN, 230088

Website

http://www.lifeon.cn

Hefei Lifeon Pharmaceutial Co Ltd is engaged in the research and development, production and sales of pharmaceutical preparations and raw materials, and the wholesale and retail of pharmaceuticals and medical devices. The main industrial products involve cardiovascular drugs, digestive system drugs, external skin drugs, endocrine system drugs and other fields.

Executives

Wang Qin	Supervisors
Wang Qing	Directors, executives
Xu Xue Yu	Executives

Hefei Lifeon Pharmaceutical Co (SZSE:003020) Headlines

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