Daito Trust Construction Co (Daito Trust Construction Co) GF Value Rank : 6 (As of Apr. 26, 2024)

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What is Daito Trust Construction Co GF Value Rank?

Daito Trust Construction Co has the GF Value Rank of 6.

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 Daito Trust Construction Co's GF Value Rank

For the Real Estate - Diversified subindustry, Daito Trust Construction 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.

Daito Trust Construction Co's GF Value Rank Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Daito Trust Construction Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Daito Trust Construction Co's GF Value Rank falls into.

Daito Trust Construction Co GF Value Rank Related Terms

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Daito Trust Construction Co (Daito Trust Construction Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Daito Trust Construction Co Ltd (OTCPK:DITTF) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

DIFTY:USA 1878:Japan 4D7:Germany

Address

2-16-1, Konan, Minato-ku, Tokyo, JPN, 108-8211

Website

http://www.kentaku.co.jp

Daito Trust Construction Co Ltd engages in the design and construction of apartments, condominiums, rental office buildings, factories, and warehouses. Additional activities include tenant recruiting, building maintenance, and contracting arrangements. A Lease Management Trust System sits at the center of Daito's operations. Under this system, business is divided between the construction business and the real estate business. The company plans and proposes building rental businesses to landowners, and then designs and constructs the contracted rental buildings. Daito also recruits tenants for its constructed rental buildings and provides property management and operation services for the buildings.

Daito Trust Construction Co (Daito Trust Construction Co) Headlines

From GuruFocus

Daito Trust Construction Co Stock Appears To Be Modestly Undervalued

By GF Value GF Value • 05-05-2021

Bernard Horn Comments on Daito Trust Construction

By Sydnee Gatewood • 10-27-2021