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China Galaxy Securities CoFRA:CGL +5.49%76 Forward Rate of Return (Yacktman) % is 10.02% as of Dec. 2025, which is 82% above its 10-year median of 5.52. GuruFocus rates FRA:CGL with a GF Score™ of 76/100 and a GF Value™ of €0.93. The stock has 4 warning signs investors should review. Among 67 Diversified Financial Services companies, China Galaxy Securities Co ranks worse than 53.73% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. China Galaxy Securities Co's forward rate of return for was 10.02%.
The historical rank and industry rank for China Galaxy Securities Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:CGL'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -48.43 Med: 5.52 Max: 56.4
Current: 10.44
During the past 13 years, China Galaxy Securities Co's highest Forward Rate of Return was 56.40. The lowest was -48.43. And the median was 5.52.
FRA:CGL's Forward Rate of Return (Yacktman) % is ranked worse than 53.73% of 67
companies
in the Diversified Financial Services industry
Industry Median: 11.31
vs FRA:CGL: 10.44
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
China Galaxy Securities Co (FRA:CGL) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of Book Value per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
China Galaxy Securities Co Forward Rate of Return (Yacktman) % Related Terms
China Galaxy Securities Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for China Galaxy Securities Co's Forward Rate of Return (Yacktman) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Galaxy Securities Co Forward Rate of Return (Yacktman) % Chart
FRA:CGL vs FRHC, VOYA: Forward Rate of Return (Yacktman) % Comparison
For the Financial Conglomerates subindustry, China Galaxy Securities Co's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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.
China Galaxy Securities Co Forward Rate of Return (Yacktman) % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, China Galaxy Securities Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where China Galaxy Securities Co's Forward Rate of Return (Yacktman) % falls into.
China Galaxy Securities Co Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 10.02% mean?
China Galaxy Securities Co (FRA:CGL) has a Forward Rate of Return (Yacktman) % of 10.02% as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on China Galaxy Securities Co and its competitors. This is 82% above median its historical median of 5.52. According to the industry distribution chart, China Galaxy Securities Co ranks #36 out of 67 companies in the Diversified Financial Services industry, placing it in the top 53.7%.
Is China Galaxy Securities Co's Forward Rate of Return (Yacktman) % too high?
China Galaxy Securities Co's current Forward Rate of Return (Yacktman) % of 10.02% is 82% above median its 10-year median of 5.52. The Diversified Financial Services industry median Forward Rate of Return (Yacktman) % is 11.31. China Galaxy Securities Co's value of 10.02% is 11.4% below this industry median. Based on the distribution chart, China Galaxy Securities Co ranks #36 out of 67 companies in the Diversified Financial Services industry, which is below the industry midpoint. Overall, China Galaxy Securities Co has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does China Galaxy Securities Co's Forward Rate of Return (Yacktman) % compare to FRHC and VOYA?
According to the Diversified Financial Services industry distribution chart, China Galaxy Securities Co ranks #36 out of 67 companies for Forward Rate of Return (Yacktman) %. This places China Galaxy Securities Co in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 11.31. China Galaxy Securities Co's value of 10.02% is 11.4% below this benchmark. While the company's 10-year median is 5.52 vs. the industry median of 11.31, China Galaxy Securities Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Diversified Financial Services company?
The median Forward Rate of Return (Yacktman) % among Diversified Financial Services companies is 11.31, based on 67 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Galaxy Securities Co's current Forward Rate of Return (Yacktman) % of 10.02% is 11.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on China Galaxy Securities Co and its competitors. For the Diversified Financial Services industry, the median Forward Rate of Return (Yacktman) % is 11.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Galaxy Securities Co's current Forward Rate of Return (Yacktman) % is 10.02%, which is 82% above median its own 10-year median of 5.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Galaxy Securities Co stock overvalued right now?
China Galaxy Securities Co (FRA:CGL) has a current Forward Rate of Return (Yacktman) % of 10.02%. The stock's GF Value™ is €0.93, compared to a current price of €0.87 — trading 7% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 10.02%, which is 82% above median its 10-year median of 5.52 and 11.4% below the Diversified Financial Services industry median of 11.31. China Galaxy Securities Co's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For China Galaxy Securities Co (FRA:CGL), the current Forward Rate of Return (Yacktman) % is 10.02% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Galaxy Securities Co (FRA:CGL) Overvalued in 2026?
Based on GuruFocus' analysis, China Galaxy Securities Co stock appears to be undervalued.
The current stock price of €0.87 is trading 7% below its estimated GF Value™ of €0.93.
Key valuation signals for FRA:CGL:
Forward Rate of Return (Yacktman) %: 10.02% (82% above median its 10-year median of 5.52)
GF Value™: €0.93 vs. price of €0.87 (7% below fair value)
Industry Position: 11.4% below the Diversified Financial Services median (#36 of 67)
No single metric tells the full story. See the FRA:CGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Galaxy Securities Co Ltd is an integrated financial services provider in the Chinese securities industry. It is principally engaged in securities and futures brokerage, institutional sales and investment research, proprietary trading and other securities trading services, margin financing and securities lending, asset management and wealth management, and equity investment management. The company's segments include the wealth management business, investment banking business, institutional business, international business, investment trading business, and other parent-subsidiary integration business.
76GF Score
Get the complete analysis for FRA:CGL
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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