Weihai City Commercial Bank Co (HKSE:09677) GF Value Rank : 7 (As of May. 15, 2024)

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What is Weihai City Commercial Bank Co GF Value Rank?

Weihai City Commercial Bank Co has the GF Value Rank of 7.

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 Weihai City Commercial Bank Co's GF Value Rank

For the Banks - Regional subindustry, Weihai City Commercial Bank 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.

Weihai City Commercial Bank Co's GF Value Rank Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Weihai City Commercial Bank Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Weihai City Commercial Bank Co's GF Value Rank falls into.

Weihai City Commercial Bank Co GF Value Rank Related Terms

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Weihai City Commercial Bank Co (HKSE:09677) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Weihai City Commercial Bank Co Ltd (HKSE:09677) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 9 Baoquan Road, Finance Building, Shandong Province, Weihai, CHN, 264200

Website

https://www.whccb.com

Weihai City Commercial Bank Co Ltd offers banking services. The group's principal businesses include corporate banking, retail banking, financial market business, and others. It generates maximum revenue from the corporate banking segment. The Corporate banking segment represents the provision of a range of financial products and services to corporations, government agencies, and financial institutions. Its products and services include corporate loans and advances, trade financing, deposit-taking activities, agency services, wealth management services, consulting and advisory services, remittance and settlement services, guarantee services, and finance leasing services.

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