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Jiangsu Shuangxing Color Plastic New Materials Co (SZSE:002585) GF Value Rank : 2 (As of May. 16, 2024)


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What is Jiangsu Shuangxing Color Plastic New Materials Co GF Value Rank?

Jiangsu Shuangxing Color Plastic New Materials 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 Jiangsu Shuangxing Color Plastic New Materials Co's GF Value Rank

For the Packaging & Containers subindustry, Jiangsu Shuangxing Color Plastic New Materials 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.


Jiangsu Shuangxing Color Plastic New Materials Co's GF Value Rank Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Jiangsu Shuangxing Color Plastic New Materials Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Jiangsu Shuangxing Color Plastic New Materials Co's GF Value Rank falls into.



Jiangsu Shuangxing Color Plastic New Materials Co GF Value Rank Related Terms

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Jiangsu Shuangxing Color Plastic New Materials Co (SZSE:002585) Business Description

Traded in Other Exchanges
N/A
Address
1 Jingtou Street, Suqian City, Jiangsu Province, CHN, 223808
Jiangsu Shuangxing Color Plastic New Materials Co Ltd is engaged in the development and production of plastic packaging materials in China. Its products include Metallized Film, Ployester Film, Hot Stamping Film, Transfer Film, Card Protection Film, Yarn Grade Film, Decorative Film, Laser Film, Thermal Sealable Film and Solar Film. The company distributes its products in domestic and to overseas markets.

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