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Star Group Co (HKSE:01560) GF Value Rank : 2 (As of Jun. 03, 2024)


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What is Star Group Co GF Value Rank?

Star Group Co has the GF Value Rank of 2.

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 Star Group Co's GF Value Rank

For the Real Estate - Development subindustry, Star Group 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.


Star Group Co's GF Value Rank Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Star Group Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Star Group Co's GF Value Rank falls into.



Star Group Co GF Value Rank Related Terms

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


Star Group Co (HKSE:01560) Business Description

Traded in Other Exchanges
N/A
Address
18 Harcourt Road, Tower 1, Unit 603, 6 Floor, Admiralty Centre, Admiralty, Hong Kong, HKG
Star Group Co Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the real estate business. Its business segments include property development; property investment for sale, rental, or capital appreciation; provision of property management and security services; construction and fitting out works; provision of finance; fund investment and fund management; wine business which includes the operation of the wine cellar and trading of fine wine; and provision of media production services It derives the majority of the revenue from the Property Development segment that engages in sales of properties and the Property Investment segment that has rental income from the leasing of properties. It operates in Hong Kong and Korea.
Executives
Lam Kin Kok
Chan Man Fai Joe 2101 Beneficial owner
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