Reverse DCF
What growth rate is priced into China Galaxy Securities Co Ltd ADR (CGXYY)?
At the current market price of —, a reverse DCF implies China Galaxy Securities Co Ltd ADR (CGXYY) must grow revenue about 17.2% per year for the next decade (30.6% in year one) to be worth what it trades for — holding margins, taxes, reinvestment, and the discount rate fixed at the model's baseline assumptions.
Market price
—
Implied growth (yr 1)
30.6%
Implied 10-yr CAGR
17.2%
China Galaxy Securities Co Ltd ADR (CGXYY) reverse DCF FAQ
What revenue growth rate is priced into China Galaxy Securities Co Ltd ADR (CGXYY)?
At the current market price of —, a reverse DCF implies China Galaxy Securities Co Ltd ADR's revenue must grow about 17.2% per year for the next ten years (starting at 30.6% in year one) to justify the price — holding margins, taxes, reinvestment, and the discount rate at the model's baseline assumptions.
What is a reverse DCF?
A regular DCF turns growth assumptions into a fair value. A reverse DCF inverts that: it holds every other assumption fixed and solves for the single revenue-growth path that makes intrinsic value equal the current market price. The result is the growth the market is already paying for — a hurdle you can judge the business against.
How does the implied growth compare with the model's own CGXYY forecast?
The forward DCF for China Galaxy Securities Co Ltd ADR estimates a fair value of $27.93 per share. If the market-implied growth is well above what the forward model assumes, the price embeds more optimism than the fundamentals-anchored forecast — and vice versa.
How this CGXYY implied growth is solved
The engine takes the same 10-year DCF used for the China Galaxy Securities Co Ltd ADR fair-value estimate — margins converging to Damodaran industry benchmarks, year-by-year WACC, a reinvestment rate tied to sales-to-capital efficiency — and inverts it: instead of projecting growth to get a value, it bisects on the starting revenue-growth rate, re-running the valuation until intrinsic value matches the market price. The implied path follows the same moat-scored convergence toward the 2% terminal growth rate that the forward model uses.
The interactive version lets you change what is held fixed — margins, convergence timing, industry benchmarks — and overlays the market-implied growth path on your own editable forecast, so you can see exactly where your expectations and the market's diverge.
The implied growth re-solves when China Galaxy Securities Co Ltd ADR files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last solved 2026-07-10.