China Telecom (HKSE:00728) GF Value Rank : 1 (As of May. 03, 2024)

View and export this data going back to 2002. Start your Free Trial

What is China Telecom GF Value Rank?

China Telecom has the GF Value Rank of 1.

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 China Telecom's GF Value Rank

For the Telecom Services subindustry, China Telecom'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.

China Telecom's GF Value Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China Telecom's GF Value Rank distribution charts can be found below:

* The bar in red indicates where China Telecom's GF Value Rank falls into.

China Telecom GF Value Rank Related Terms

Thank you for viewing the detailed overview of China Telecom's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

China Telecom (HKSE:00728) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Telecom Corp Ltd (HKSE:00728) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ZCH:Germany 601728:China

Address

31 Jinrong Street, Xicheng District, Beijing, CHN, 100033

Website

https://www.chinatelecom-h.com

China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces. It has 102 million fixed-line subscribers, 189 million broadband customers, and 406 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China, with a plan to have 560,000 cabinets by end 2023.

China Telecom (HKSE:00728) Headlines

No Headlines