Value Convergence Holdings (Value Convergence Holdings) GF Value Rank : 0 (As of Jun. 23, 2024)

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What is Value Convergence Holdings GF Value Rank?

Value Convergence Holdings has the GF Value Rank of 0.

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.

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Value Convergence Holdings (Value Convergence Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Value Convergence Holdings Ltd (OTCPK:VCHLF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

00821:Hong Kong

Address

181-185 Gloucester Road, 6th Floor, Centre Point, Wanchai, Hong Kong, HKG

Website

https://www.vcgroup.com.hk

Value Convergence Holdings Ltd is a financial services group delivering financial services and products that fulfill various investment and wealth management needs of clients in the Greater China region. The company's operating segments include Brokerage and Financing; Corporate Finance and other Advisory services; Asset Management; Insurance Brokerage; Proprietary Trading; and Digital asset. The majority of its revenue derives from the Brokerage and Financing segment that engages in securities, futures, and options brokering and dealing, provision of margin financing and money lending, and placing and underwriting services.

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