Thanks Kyith for the sharing! I agree more with your this newest sharing. I think CDG will probably grow with single digit growth rate in view of competition not only with it's local taxi business but also it's overseas transport businesses may face competition as well as pricing pressure. I have noticed that for the past decade, it has given only a single digit CAGR for various financial metrics such as revenues, operating income, operating cash flows etc.
Unless there are any future major positive changes in it's various businesses in order to improve it's competitive moats significantly, or else I think it will just cruise along with single digit growth rates at best. If that is the case, then the estimated intrinsic value per share could be as what you shared in this newest sharing of between $1.30 to $1.60 range taking into account the figures you posted here. Maybe so?
Reply to @jeremyowtaip : with the now disruptive nature. CDG doesn't have the moat which they once have. which raise the qn of is CDG still a buy like it used to.
There is a certain risk to equity return. if you do not use a approrpriate hurdle, every stock will look attractively valued. The rule of thumb is, if the business is normal use 10%. if the business have a strong moat 8%. if the business is more risky 12%.
Tks Kyith...FA investors better run first.. TA investors short...
Thanks Kyith for the sharing! I agree more with your this newest sharing. I think CDG will probably grow with single digit growth rate in view of competition not only with it's local taxi business but also it's overseas transport businesses may face competition as well as pricing pressure. I have noticed that for the past decade, it has given only a single digit CAGR for various financial metrics such as revenues, operating income, operating cash flows etc.
Unless there are any future major positive changes in it's various businesses in order to improve it's competitive moats significantly, or else I think it will just cruise along with single digit growth rates at best. If that is the case, then the estimated intrinsic value per share could be as what you shared in this newest sharing of between $1.30 to $1.60 range taking into account the figures you posted here. Maybe so?
Reply to @jeremyowtaip : with the now disruptive nature. CDG doesn't have the moat which they once have. which raise the qn of is CDG still a buy like it used to.
There is a certain risk to equity return. if you do not use a approrpriate hurdle, every stock will look attractively valued. The rule of thumb is, if the business is normal use 10%. if the business have a strong moat 8%. if the business is more risky 12%.