GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Cabio Biotech (Wuhan) Co Ltd (SHSE:688089) » Definitions » GF Value Rank

Cabio Biotech (Wuhan) Co (SHSE:688089) GF Value Rank : 2 (As of May. 29, 2024)


View and export this data going back to 2019. Start your Free Trial

What is Cabio Biotech (Wuhan) Co GF Value Rank?

Cabio Biotech (Wuhan) 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 Cabio Biotech (Wuhan) Co's GF Value Rank

For the Biotechnology subindustry, Cabio Biotech (Wuhan) 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.


Cabio Biotech (Wuhan) Co's GF Value Rank Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Cabio Biotech (Wuhan) Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Cabio Biotech (Wuhan) Co's GF Value Rank falls into.



Cabio Biotech (Wuhan) Co GF Value Rank Related Terms

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


Cabio Biotech (Wuhan) Co (SHSE:688089) Business Description

Traded in Other Exchanges
N/A
Address
No. 999, Gaoxin Avenue, Donghu New Technology Development Zone, Wuhan, CHN, 430073
Cabio Biotech (Wuhan) Co Ltd is a biotechnology company, engaged in Research & Development, production and sales of polyunsaturated fatty acids ARA, algae oil DHA and SA, natural B-carotene and other series products. The products are used in infant formula, dietary nutrition supplements and health Food, special medical formula food and other fields. The company's product sales area covers China, the United States, Europe, Australia, New Zealand, South Korea, and Southeast Asia.
Executives
Shang Yun Core technical personnel
Wang Hua Biao Directors, senior managers
Geng An Feng senior management
Du Bin Director
Yi Hua Rong senior management
Ma Tao senior management
Li Xiang Yu senior management
Wu Yu Jun Supervisors
Xiao Min senior management
Wang Zhi Ming senior management
Lu Shu Huan Core technical personnel
Yi De Wei Director

Cabio Biotech (Wuhan) Co (SHSE:688089) Headlines

No Headlines