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BOCOM International Holdings Co (FRA:597) GF Value Rank : 4 (As of May. 23, 2024)


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What is BOCOM International Holdings Co GF Value Rank?

BOCOM International Holdings Co 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 BOCOM International Holdings Co's GF Value Rank

For the Financial Conglomerates subindustry, BOCOM International Holdings 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.


BOCOM International Holdings Co's GF Value Rank Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, BOCOM International Holdings Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where BOCOM International Holdings Co's GF Value Rank falls into.



BOCOM International Holdings Co GF Value Rank Related Terms

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BOCOM International Holdings Co (FRA:597) Business Description

Traded in Other Exchanges
Address
68 Des Voeux Road Central, 9th Floor, Man Yee Building, Hong Kong, HKG
BOCOM International Holdings Co Ltd is an investment holding company, which operates as an integrated platform for securities and related financial services. The group is engaged in five segments: Brokerage, Corporate finance & underwriting, Asset management & advisory, Margin Financing, Investment & Loan, and Others. It generates revenue from Commission & fee income, Interest income, and Proprietary trading income. The company's geographical segments are Hong Kong and Mainland China, of which the vast majority of its revenue comes from Hong Kong.

BOCOM International Holdings Co (FRA:597) Headlines

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