GURUFOCUS.COM » STOCK LIST » Technology » Software » Zhongfu Information Inc (SZSE:300659) » Definitions » GF Value Rank

Zhongfu Information (SZSE:300659) GF Value Rank : 4 (As of Jun. 24, 2024)


View and export this data going back to 2017. Start your Free Trial

What is Zhongfu Information GF Value Rank?

Zhongfu Information has the GF Value Rank of 4.

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 Zhongfu Information's GF Value Rank

For the Software - Infrastructure subindustry, Zhongfu Information'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.


Zhongfu Information's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Zhongfu Information's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Zhongfu Information's GF Value Rank falls into.



Zhongfu Information GF Value Rank Related Terms

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


Zhongfu Information (SZSE:300659) Business Description

Traded in Other Exchanges
N/A
Address
1166 Xinyi Street, Gaoxin Zone, Floors 15-16, Building 2, Aosheng Building, Jinan High-tech Zone, Shandong, Jinan, CHN, 250101
Zhongfu Information Inc is a provider of network and information security solutions. It specializes in information security technology and product development, sales and providing industry solutions and security services. The company offers security solutions, password application solutions and public safety solutions. Security solutions include information security and confidentiality management, network information one-way data transmission, and integrated business information management solutions. Password application solution comprises electronic business license and mobile billing. Public safety solutions consist of the public opinion warning application, visual intelligence analysis, and public security synthetic combat platform.
Executives
Wei Dong Xiao Directors, executives
Chen Zhi Jiang Director
Liu Zhen Dong Supervisors
Zhang Tai Xiang Supervisors
Yu Wei Hua Supervisors
Sun Qiang Directors, Directors, and Executives
Liu Hai Wei Directors, executives
Wang Meng Supervisors

Zhongfu Information (SZSE:300659) Headlines

No Headlines