NCTY Intrinsic Valuation and Fundamental Analysis - The9 Ltd - Alpha Spread

The9 Ltd
NASDAQ:NCTY

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The9 Ltd
NASDAQ:NCTY
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Price: 8.43 USD -0.82%
Market Cap: 75.8m USD
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Intrinsic Value

NCTY's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

The intrinsic value of one NCTY stock under the Base Case scenario is 9.8 USD. Compared to the current market price of 8.43 USD, The9 Ltd is Undervalued by 14%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

NCTY Intrinsic Value
9.8 USD
Undervaluation 14%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

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The9 Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Summary

 

 

 

 

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Revenue & Expenses Breakdown
The9 Ltd

Balance Sheet Decomposition
The9 Ltd

Current Assets 222.8m
Cash & Short-Term Investments 45.2m
Receivables 6.9m
Other Current Assets 170.6m
Non-Current Assets 140.9m
Long-Term Investments 35.3m
PP&E 101.2m
Other Non-Current Assets 4.4m
Current Liabilities 162.9m
Accounts Payable 21.3m
Accrued Liabilities 50.3m
Other Current Liabilities 91.3m
Non-Current Liabilities -5.4m
Long-Term Debt 16.7m
Other Non-Current Liabilities -22.1m
Efficiency

Earnings Waterfall
The9 Ltd

Revenue
179m CNY
Cost of Revenue
-211.9m CNY
Gross Profit
-32.8m CNY
Operating Expenses
-206.8m CNY
Operating Income
-239.6m CNY
Other Expenses
259.6m CNY
Net Income
20m CNY

Free Cash Flow Analysis
The9 Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

NCTY Profitability Score
Profitability Due Diligence

The9 Ltd's profitability score is 24/100. The higher the profitability score, the more profitable the company is.

ROE is Increasing
ROIC is Increasing
Exceptional 1-Year Revenue Growth
Positive ROE
24/100
Profitability
Score

The9 Ltd's profitability score is 24/100. The higher the profitability score, the more profitable the company is.

NCTY Solvency Score
Solvency Due Diligence

The9 Ltd's solvency score is 54/100. The higher the solvency score, the more solvent the company is.

Low D/E
Negative Net Debt
Long-Term Solvency
Short-Term Solvency
54/100
Solvency
Score

The9 Ltd's solvency score is 54/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

NCTY Price Targets Summary
The9 Ltd

There are no price targets for NCTY.
Lowest
Price Target
Not Available
Average
Price Target
Not Available
Highest
Price Target
Not Available
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Oct 14, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
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Shareholder Yield

Current shareholder yield for NCTY is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
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Buyback Yield
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Debt Paydown Yield
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Profile

The9 Ltd Logo
The9 Ltd

Country

China

Industry

Media

Market Cap

77.3m USD

Dividend Yield

0%

Description

The9 Ltd. engages in the operation of online games. The company is headquartered in Shanghai, Shanghai and currently employs 47 full-time employees. The company went IPO on 2004-12-16. The firm's main businesses are the operation and development of mobile phones and computer games. The firm offers online games, including massively multiplayer online role playing games (MMORPGs), massively multiplayer online first-person shooter games (MMOFPSs), Web games, social games, mobile games and television games. The firm's main products include Legend of Immortals, The World of Kings, CrossFire and others. The firm is also engaged in cryptocurrency mining and operations, as well as the development of non-fungible token platform NFTSTAR. The firm conducts business through subsidiaries in mainland China, the United States, Singapore and Hong Kong.

Contact

SHANGHAI
Shanghai
17 Floor, No. 130 Wu Song Road,, Hong Kou District
+862151729999.0
www.the9.com

IPO

2004-12-16

Employees

47

Officers

See Also

Discover More
What is the Intrinsic Value of one NCTY stock?

The intrinsic value of one NCTY stock under the Base Case scenario is 9.8 USD.

Is NCTY stock undervalued or overvalued?

Compared to the current market price of 8.43 USD, The9 Ltd is Undervalued by 14%.

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