GURUFOCUS.COM » STOCK LIST » Industrials » Construction » AB Builders Group Ltd (HKSE:01615) » Definitions » GF Value Rank

AB Builders Group (HKSE:01615) GF Value Rank : 0 (As of Jun. 09, 2024)


View and export this data going back to 2018. Start your Free Trial

What is AB Builders Group GF Value Rank?

AB Builders Group has the GF Value Rank of 0.

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.


AB Builders Group GF Value Rank Related Terms

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


AB Builders Group (HKSE:01615) Business Description

Traded in Other Exchanges
N/A
Address
No. 126, Rua De Pequim, Edf. Commercial I Tak, 10th Floor, Macao, MAC
AB Builders Group Ltd operates as a construction contractor, focused on providing structural works, including substructure and superstructure works such as foundation works, basement works, piling and pile cap work, and the construction of high rise buildings, and fitting-out works. The company's reportable segments are Fitting-out works; Structural works; and Air purification business. It generates a vast majority of its revenue from the Fitting-out works segment. The company's operations are located in Macau and Hong Kong, of which key revenue is derived from Macau.
Executives
Lao Chio Seng 2201 Interest of corporation controlled by you
Wong Hio Mei 2202 Interest of your spouse
Laos International Holdings Limited 2101 Beneficial owner
Ip Kin Wa 2101 Beneficial owner
Whm Holdings Limited 2101 Beneficial owner

AB Builders Group (HKSE:01615) Headlines

No Headlines