Shandong Chenming Paper Holdings (SZSE:000488) GF Value Rank : 4 (As of May. 05, 2024)

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What is Shandong Chenming Paper Holdings GF Value Rank?

Shandong Chenming Paper Holdings 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 Shandong Chenming Paper Holdings's GF Value Rank

For the Paper & Paper Products subindustry, Shandong Chenming Paper Holdings'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.

Shandong Chenming Paper Holdings's GF Value Rank Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Shandong Chenming Paper Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Shandong Chenming Paper Holdings's GF Value Rank falls into.

Shandong Chenming Paper Holdings GF Value Rank Related Terms

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Shandong Chenming Paper Holdings (SZSE:000488) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Shandong Chenming Paper Holdings Ltd (SZSE:000488) » Definitions » GF Value Rank

Traded in Other Exchanges

01812:Hong Kong SCD1:Germany 200488:China

Address

No. 2199 Nongsheng East Road, Shandong Province, Shouguang, CHN, 262705

Website

http://www.chenmingpaper.com

Shandong Chenming Paper Holdings Ltd is a paper making company. The company's product mix consists of printing paper, packaging paper, office paper, industrial paper and household paper, and various other types of paper mixes. Maximum revenue is derived from the sale of its paper products. The company's segments are Machine-made paper, Financial services, Hotels and property, and other segments. Geographically, it derives a majority of revenue from Mainland China.

Shandong Chenming Paper Holdings (SZSE:000488) Headlines

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