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Yuancheng Environment Co (SHSE:603388) GF Value Rank : 4 (As of May. 28, 2024)


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What is Yuancheng Environment Co GF Value Rank?

Yuancheng Environment Co has the GF Value Rank of 4.

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 Yuancheng Environment Co's GF Value Rank

For the Engineering & Construction subindustry, Yuancheng Environment 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.


Yuancheng Environment Co's GF Value Rank Distribution in the Construction Industry

For the Construction industry and Industrials sector, Yuancheng Environment Co's GF Value Rank distribution charts can be found below:

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



Yuancheng Environment Co GF Value Rank Related Terms

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Yuancheng Environment Co (SHSE:603388) Business Description

Traded in Other Exchanges
N/A
Address
2-6 Qingchun East Road, 15th Floor, Hangzhou Jintou Financial Building, Zhejiang Province, Hangzhou, CHN
Yuancheng Environment Co Ltd is a Chinese eco-environmental service provider. It integrates planning, design, construction, seedling production and marketing, technology research and development, information services, and industrial investment. The firm focuses on projects such as eco-environment, green environmental protection, and leisure tourism.
Executives
Zhu Chang Ren Director
Chen Ping senior management
Yao Li Hua Director
Zhang Jian He Director
Zhou Jin Hai Director
Kong Wei Bo senior management
Shen Guo Tai Supervisors

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