Sungrow Power Supply Co (SZSE:300274) GF Value Rank : 2 (As of May. 01, 2024)

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What is Sungrow Power Supply Co GF Value Rank?

Sungrow Power Supply 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 Sungrow Power Supply Co's GF Value Rank

For the Electrical Equipment & Parts subindustry, Sungrow Power Supply 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.

Sungrow Power Supply Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sungrow Power Supply Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sungrow Power Supply Co's GF Value Rank falls into.

Sungrow Power Supply Co GF Value Rank Related Terms

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Sungrow Power Supply Co (SZSE:300274) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Sungrow Power Supply Co Ltd (SZSE:300274) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No.1699 Xiyou Raod, High-tech Industry Development Zone, Anhui Province, Hefei, CHN, 230088

Website

http://www.sungrowpower.com

China-based Sungrow manufactures and sells power supply equipment for the new energy industry. It offers a wide range of products, including solar inverters, energy storage systems, wind power converters, electric vehicle drives, among others. It is one of the largest suppliers of solar inverters and energy storage systems globally. It is also one of the largest new energy project developers in the world. Solar inverters, energy storage systems, and new energy investment and development each accounted for 39%, 25%, and 29% of revenue in 2022, respectively.

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