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NetDragon Websoft (HKSE:00777) GF Value Rank : 7 (As of Jun. 03, 2024)


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What is NetDragon Websoft GF Value Rank?

NetDragon Websoft has the GF Value Rank of 7.

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 NetDragon Websoft's GF Value Rank

For the Electronic Gaming & Multimedia subindustry, NetDragon Websoft'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.


NetDragon Websoft's GF Value Rank Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NetDragon Websoft's GF Value Rank distribution charts can be found below:

* The bar in red indicates where NetDragon Websoft's GF Value Rank falls into.



NetDragon Websoft GF Value Rank Related Terms

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NetDragon Websoft (HKSE:00777) Business Description

Traded in Other Exchanges
Address
58 Wenquan Branch Road, 851 Building, Fuzhou, CHN
NetDragon Websoft Inc is a Chinese holding company that engages in developing and operating online and mobile games as well as educational platforms. NetDragon's games include PC games, web-based games, mobile games, and e-sports games. PC games constitute the majority of the company's games sales. The company's game portfolio is composed of a range of games that appeal to various types of players. These games include Way of the Five, Eudemons Online, Conquer Online, Zero Online, and Heroes of Might & Magic Online. The company has operations in North America, Europe, and Asia.
Executives
Zhou Quan 2201 Interest of corporation controlled by you
Idg-accel China Growth Fund Gp Associates Ltd. 2201 Interest of corporation controlled by you
Ho Chi Sing 2201 Interest of corporation controlled by you
Liu Luyuan 2401 A concert party to an agreement to buy shares
Liu Dejian 2401 A concert party to an agreement to buy shares
Zheng Hui 2401 A concert party to an agreement to buy shares
Djm Holding Ltd. 2101 Beneficial owner
Idg-accel China Growth Fund L.p. 2101 Beneficial owner
Idg-accel China Growth Fund Associates L.p. 2201 Interest of corporation controlled by you

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