The9 Stock Valuation

NCTY
 Stock
  

USD 1.64  0.05  3.14%   

Do you wonder what the value of The9 Ltd ADR is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as The9, is its stock price multiplied by the total number of shares outstanding, calculating The9's enterprise value requires a different approach. It uses The9's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The9 Ltd ADR has a current Real Value of $1.4 per share. The regular price of the company is $1.64. Based on Macroaxis valuation methodology, the company appears to be overvalued. Our model measures the value of The9 Ltd ADR from inspecting the company fundamentals such as Shares Owned by Insiders of 2.13 %, return on equity of (187.31) %, and Current Valuation of (292.82 M) as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
The9 Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as The9's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

The9 Most Recent Valuation Data

Price Book
0.31
Enterprise Value
-12.9 M
Enterprise Value Ebitda
0.052
Price Sales
0.29
Enterprise Value Revenue
0.0094
Overvalued
Today 1.64
Please note that The9's price fluctuation is abnormally volatile at this time. Calculation of the real value of The9 Ltd ADR is based on 3 months time horizon. Increasing The9's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for The9 Ltd ADR is useful when determining the fair value of the The9 stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of The9. Since The9 is currently traded on the exchange, buyers and sellers on that exchange determine the market value of The9 Stock. However, The9's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
1.40
Real Value
9.43
Upside
Estimating the potential upside or downside of The9 Ltd ADR helps investors to forecast how The9 stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of The9 more accurately as focusing exclusively on The9's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.291.712.12
Details
Hype
Prediction
LowEstimated ValueHigh
0.081.669.69
Details
Naive
Forecast
LowNext ValueHigh
0.0367161.849.86
Details

The9 Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining The9's current stock value. Our valuation model uses many indicators to compare The9 value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across The9 competition to find correlations between indicators driving The9's intrinsic value. More Info.
The9 Ltd ADR is rated below average in price to book category among related companies. It is rated below average in last dividend paid category among related companies creating about  1,110  of Last Dividend Paid per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value The9 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for The9's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the The9's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates The9's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in The9 and how it compares across the competition.

About The9 Valuation

The equity valuation mechanism determines the current worth of The9 Ltd ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of The9 Ltd ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of The9 Ltd ADR based exclusively on its fundamental and basic technical indicators. By analyzing The9's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of The9's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of The9. We calculate exposure to The9's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to The9's related companies.
Fiscal Year End
December
Industry
Electronic Gaming & Multimedia
Concentration
Interactive Home Entertainment
Full Time Employees
74.0
Service Category
Entertainment
The9 Limited, together with its subsidiaries, operates as an Internet company in the Peoples Republic of China. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the Peoples Republic of China. The9 operates under Electronic Gaming Multimedia classification in the United States and is traded on NASDAQ Exchange. It employs 74 people.

The9 Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as The9 does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.91
Revenue Growth6,221.30%
Enterprise Value To Ebitda1.07
Enterprise Value To Revenue-2.15
Additionally, see Stocks Correlation. Note that the The9 Ltd ADR information on this page should be used as a complementary analysis to other The9's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running The9 Ltd ADR price analysis, check to measure The9's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy The9 is operating at the current time. Most of The9's value examination focuses on studying past and present price action to predict the probability of The9's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move The9's price. Additionally, you may evaluate how the addition of The9 to your portfolios can decrease your overall portfolio volatility.
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Is The9's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of The9. If investors know The9 will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about The9 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
39.1 M
Quarterly Revenue Growth YOY
62.21
Return On Assets
-0.29
Return On Equity
-1.87
The market value of The9 Ltd ADR is measured differently than its book value, which is the value of The9 that is recorded on the company's balance sheet. Investors also form their own opinion of The9's value that differs from its market value or its book value, called intrinsic value, which is The9's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because The9's market value can be influenced by many factors that don't directly affect The9's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between The9's value and its price as these two are different measures arrived at by different means. Investors typically determine The9 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, The9's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.