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Hand Enterprise Solutions Co (SZSE:300170) GF Value Rank : 8 (As of May. 30, 2024)


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What is Hand Enterprise Solutions Co GF Value Rank?

Hand Enterprise Solutions Co has the GF Value Rank of 8.

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 Hand Enterprise Solutions Co's GF Value Rank

For the Information Technology Services subindustry, Hand Enterprise Solutions 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.


Hand Enterprise Solutions Co's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Hand Enterprise Solutions Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hand Enterprise Solutions Co's GF Value Rank falls into.



Hand Enterprise Solutions Co GF Value Rank Related Terms

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Hand Enterprise Solutions Co (SZSE:300170) Business Description

Traded in Other Exchanges
N/A
Address
Room 1339 Central Plaza, No 381Central Huaihai Road, Shanghai, CHN, 200020
Hand Enterprise Solutions Co Ltd is a China-based ERP consulting implementation company. Its business operations include enterprise information application product development, consulting implementation and technical services. Its product and service offering comprises charge control system, supply chain financial services cloud platform, master data management, enterprise mobile platform, and other technical products.
Executives
Chen Di Qing Director
Huang Qing Supervisors
Lu Ya Securities Affairs Representative
Shu Xiao Securities Affairs Representative
Fan Jian Zhen Director
Wang Xin Yi Executives
Zhang Wei Feng Directors, executives

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