Hung Ching Developmentnstruction Co (TPE:2527) GF Value Rank : 1 (As of May. 24, 2024)

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What is Hung Ching Developmentnstruction Co GF Value Rank?

Hung Ching Developmentnstruction 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 Hung Ching Developmentnstruction Co's GF Value Rank

For the Real Estate Services subindustry, Hung Ching Developmentnstruction 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.

Hung Ching Developmentnstruction Co's GF Value Rank Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Hung Ching Developmentnstruction Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hung Ching Developmentnstruction Co's GF Value Rank falls into.

Hung Ching Developmentnstruction Co GF Value Rank Related Terms

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Hung Ching Developmentnstruction Co (TPE:2527) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Hung Ching Development & Construction Co Ltd (TPE:2527) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

Keelung Road, 10th Floor, No.420, Section 1, Taipei, TWN

Website

http://www.asehcc.com.tw

Hung Ching Development & Construction Co Ltd is a Taiwan-based real estate company. It is engaged in the construction of national residential and commercial buildings for rent and sale. It is also engaged in the trading of various building materials. Reporting segments of the Group are divided into Real estate development, Construction, and Lease; Real estate is the key revenue driver for the company. Real estate development conducting sales of residential and commercial property and plant. Construction provides the building of residential and commercial property and plants. The leasing segment includes the lease of investment property.

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