China Lilang (HKSE:01234) GF Value Rank : 5 (As of May. 18, 2024)

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What is China Lilang GF Value Rank?

China Lilang 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 China Lilang's GF Value Rank

For the Apparel Manufacturing subindustry, China Lilang'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 Lilang's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, China Lilang's GF Value Rank distribution charts can be found below:

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

China Lilang GF Value Rank Related Terms

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China Lilang (HKSE:01234) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » China Lilang Ltd (HKSE:01234) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

5LX:Germany

Address

200 Chang Xing Road, Lilang Industrial Park, Fujian Province, Jinjiang, CHN, 362200

Website

https://www.lilanz.com

China Lilang Ltd manufactures business and casual menswear apparel, with roughly two thirds of revenue coming from tops. China Lilang sells its products under the Lilanz brand, which generates the vast majority of the company's revenue, and the L2 brand. All the company's sales are made in China. China Lilang wholesales its products to distributors who operate thousands of Lilanz-branded and L2-branded retail stores. China Lilang also has two self-operated flagship retail stores and sells its products through its own and third-party e-commerce platforms.

China Lilang (HKSE:01234) Headlines

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