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Guangdong Hybribio Biotech Co (SZSE:300639) GF Value Rank : 1 (As of May. 22, 2024)


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What is Guangdong Hybribio Biotech Co GF Value Rank?

Guangdong Hybribio Biotech 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 Guangdong Hybribio Biotech Co's GF Value Rank

For the Diagnostics & Research subindustry, Guangdong Hybribio Biotech 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 Hybribio Biotech Co's GF Value Rank Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Guangdong Hybribio Biotech Co's GF Value Rank distribution charts can be found below:

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



Guangdong Hybribio Biotech Co GF Value Rank Related Terms

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Guangdong Hybribio Biotech Co (SZSE:300639) Business Description

Traded in Other Exchanges
N/A
Address
D 5-3-3-4, North High-tech Zone, Economic Development Zone, Chaozhou City, CHN, 521000
Guangdong Hybribio Biotech Co Ltd is a Chinese company engaged in offering vitro diagnostic assays. Its products include in-vitro diagnostic kits, female sample collection kit, DNA extraction kit, and other devices. The company's products help in the infectious pathogens detection and genetic disease detection, including human papillomavirus, thalassemia, G6PD, hearing loss susceptibility, phenylketonuria, and early cancer detection, among others. The company has a business presence in China and various other countries.

Guangdong Hybribio Biotech Co (SZSE:300639) Headlines

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