Sanchuan Wisdom Technology Co (SZSE:300066) GF Value Rank : 2 (As of Jun. 20, 2024)

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What is Sanchuan Wisdom Technology Co GF Value Rank?

Sanchuan Wisdom Technology 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 Sanchuan Wisdom Technology Co's GF Value Rank

For the Specialty Industrial Machinery subindustry, Sanchuan Wisdom Technology 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.

Sanchuan Wisdom Technology Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sanchuan Wisdom Technology Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sanchuan Wisdom Technology Co's GF Value Rank falls into.

Sanchuan Wisdom Technology Co GF Value Rank Related Terms

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Sanchuan Wisdom Technology Co (SZSE:300066) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Sanchuan Wisdom Technology Co Ltd (SZSE:300066) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Industrial Park District, Yingtan, Jiangxi, CHN, 335000

Website

http://www.ytsanchuan.com

Sanchuan Wisdom Technology Co Ltd is engaged in manufacturing water saving type water meter, intellectual card type water meter, network remote transmission water meter, direct reading electronic remote transmission water, drainage pipe and pipe fitting, water company management and application software.

Executives

Tong Bao Hua	Supervisors
Wu Xue Song	Directors, executives
Song Cai Hua	Directors, executives
Yang Zhi Qing	Supervisors
Li Qiang Zu	Directors, executives
Luo An Bao	Supervisors
Li Jian Lin	Director
Huang Cheng Ming	Securities Affairs Representative
Luo You Zheng	Supervisors
Ni Guo Qiang	Executives, executives

Sanchuan Wisdom Technology Co (SZSE:300066) Headlines

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