Kwoon Chung Bus Holdings (HKSE:00306) GF Value Rank : 5 (As of May. 14, 2024)

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What is Kwoon Chung Bus Holdings GF Value Rank?

Kwoon Chung Bus Holdings has the GF Value Rank of 5.

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 Kwoon Chung Bus Holdings's GF Value Rank

For the Railroads subindustry, Kwoon Chung Bus Holdings'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.

Kwoon Chung Bus Holdings's GF Value Rank Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Kwoon Chung Bus Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Kwoon Chung Bus Holdings's GF Value Rank falls into.

Kwoon Chung Bus Holdings GF Value Rank Related Terms

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Kwoon Chung Bus Holdings (HKSE:00306) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Kwoon Chung Bus Holdings Ltd (HKSE:00306) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Chong Fu Road, 3rd Floor, Chai Wan, Hong Kong, HKG

Website

https://www.kcbh.com.hk

Kwoon Chung Bus Holdings Ltd is engaged in transportation businesses. The company's operating segment includes a Non-franchised Bus; Limousine; Franchised Bus and PLB; Mainland China Business and Others. It generates maximum revenue from the Non-franchised bus segment. The Non-franchised bus segment includes the provision of non-franchised bus hire services in Hong Kong, cross-boundary passenger transportation services (other than limousine hire services) between Hong Kong and Mainland China, and other related services.

Kwoon Chung Bus Holdings (HKSE:00306) Headlines

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