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Shenzhen Kingdom Sci-tech Co (SHSE:600446) GF Value Rank : 7 (As of May. 27, 2024)


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What is Shenzhen Kingdom Sci-tech Co GF Value Rank?

Shenzhen Kingdom Sci-tech 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 Shenzhen Kingdom Sci-tech Co's GF Value Rank

For the Software - Application subindustry, Shenzhen Kingdom Sci-tech 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.


Shenzhen Kingdom Sci-tech Co's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Shenzhen Kingdom Sci-tech Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Shenzhen Kingdom Sci-tech Co's GF Value Rank falls into.



Shenzhen Kingdom Sci-tech Co GF Value Rank Related Terms

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Shenzhen Kingdom Sci-tech Co (SHSE:600446) Business Description

Traded in Other Exchanges
N/A
Address
the 9th high-South Road, Shenzhen Science and Technology Parks, Nanshan District, Shenzhen, CHN, 518026
Shenzhen Kingdom Sci-tech Co Ltd operates as a financial technology company in China. It offers software in the fields of securities, funds, banking, futures, insurance, trust, integrated finance, and regulatory agencies.
Executives
Wang Hai Hang senior management
Zhong Gui Quan senior management
Zhao Jian Director
Xu Min Bo Director
Zhang Hai Long senior management
Zhou Zhi Chao senior management
Wang Qing Ruo senior management
Du Xuan Director
Li Jie Yi Director
Liu Ying Supervisors
Yin Ming senior management
Li Shi Cong Supervisors
Liu Xiong Ren Supervisors
Wu Xiao Lin senior management
Zhou Yong Hong senior management

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