Tsingtao Brewery Co (SHSE:600600) GF Value Rank : 9 (As of Apr. 28, 2024)

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What is Tsingtao Brewery Co GF Value Rank?

Tsingtao Brewery Co has the GF Value Rank of 9.

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 Tsingtao Brewery Co's GF Value Rank

For the Beverages - Brewers subindustry, Tsingtao Brewery 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.

Tsingtao Brewery Co's GF Value Rank Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Tsingtao Brewery Co's GF Value Rank distribution charts can be found below:

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

Tsingtao Brewery Co GF Value Rank Related Terms

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Tsingtao Brewery Co (SHSE:600600) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Tsingtao Brewery Co Ltd (SHSE:600600) » Definitions » GF Value Rank

Traded in Other Exchanges

TSGTY:USA TSGTF:USA 00168:Hong Kong TSI:Germany

Address

No. 35, Donghai West Road, Tsingtao Beer Tower, Shandong Province, Qingdao, CHN, 266071

Website

https://www.tsingtao.com

With over 100 years of history, Tsingtao Brewery has become one of the leading brewers in China with its namesake Tsingtao brand. The company has a dominant position in its core market, Shandong province, which contributed over 60% of its revenue and net profit in 2022. Unlike other major brewers, Tsingtao Brewery's brand umbrellas consist entirely of domestic brands. The Tsingtao brand has a mid-range to high-end market positioning and contributed over half of its volume whereas the mass market Laoshan brand targets the mainstream segment, with a declining volume mix as the company sought to premiumize its portfolio in recent years.

Tsingtao Brewery Co (SHSE:600600) Headlines

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