NCTY Relative Valuation - The9 Ltd - Alpha Spread

The9 Ltd
NASDAQ:NCTY

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The9 Ltd
NASDAQ:NCTY
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Price: 6.8997 USD 0%
Market Cap: 62m USD
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Relative Value

The Relative Value of one NCTY stock under the Base Case scenario is 9.8804 USD. Compared to the current market price of 6.8997 USD, The9 Ltd is Undervalued by 30%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

NCTY Relative Value
Base Case
9.8804 USD
Undervaluation 30%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
92
vs Industry
25
Median 3Y
4.8
Median 5Y
18.2
Industry
1.4
vs History
9
vs Industry
17
Median 3Y
-0.8
Median 5Y
-3.3
Industry
17.4
vs History
vs Industry
Median 3Y
-0.8
Median 5Y
-3.3
Industry
11.4
vs History
vs Industry
Median 3Y
-0.9
Median 5Y
-3.6
Industry
15.6
vs History
79
vs Industry
26
Median 3Y
2.6
Median 5Y
9.4
Industry
1.7
vs History
92
vs Industry
25
Median 3Y
4.3
Median 5Y
16.7
Industry
1.5
vs History
vs Industry
Median 3Y
-13.7
Median 5Y
-519.5
Industry
3.3
vs History
vs Industry
Median 3Y
-2.2
Median 5Y
-3.9
Industry
8.8
vs History
vs Industry
Median 3Y
-1.8
Median 5Y
-3.3
Industry
12.3
vs History
vs Industry
Median 3Y
-0.8
Median 5Y
-3
Industry
10.6
vs History
vs Industry
Median 3Y
-0.7
Median 5Y
-2.7
Industry
13.7
vs History
76
vs Industry
32
Median 3Y
1.5
Median 5Y
4.9
Industry
1.4

Multiples Across Competitors

NCTY Competitors Multiples
The9 Ltd Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
CN
The9 Ltd
NASDAQ:NCTY
63.4m USD 2.5 22 -2.2 -1.8
US
Activision Blizzard Inc
LSE:0H8X
74.1B USD 8.5 34.2 24.6 28.9
JP
Nintendo Co Ltd
TSE:7974
8.8T JPY 6.1 22.6 16 16.7
CN
NetEase Inc
NASDAQ:NTES
50B USD 3.3 12.3 7.8 8.5
SG
Sea Ltd
NYSE:SE
45.7B USD 3.2 -228.2 109.4 -1 486.5
US
Electronic Arts Inc
NASDAQ:EA
38.6B USD 5.3 33.6 20.2 25.6
US
Roblox Corp
NYSE:RBLX
30.7B USD 9.7 -28.4 -29.9 -24.5
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
26.6B USD 4.9 -7 39 -75.8
JP
Nexon Co Ltd
TSE:3659
2.2T JPY 5.1 32.2 11.9 12.7
JP
Konami Holdings Corp
TSE:9766
1.8T JPY 4.9 28.3 14.4 18.4
KR
Krafton Inc
KRX:259960
15.4T KRW 6.5 17.2 10.9 12.1
P/E Multiple
Earnings Growth
CN
The9 Ltd
NASDAQ:NCTY
Average P/E: 25.3
22
N/A
US
A
Activision Blizzard Inc
LSE:0H8X
34.2
151%
JP
Nintendo Co Ltd
TSE:7974
22.6
-4%
CN
NetEase Inc
NASDAQ:NTES
12.3
34%
SG
Sea Ltd
NYSE:SE
Negative Multiple: -228.2
1 129%
US
Electronic Arts Inc
NASDAQ:EA
33.6
98%
US
Roblox Corp
NYSE:RBLX
Negative Multiple: -28.4 N/A
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
Negative Multiple: -7 N/A
JP
N
Nexon Co Ltd
TSE:3659
32.2
115%
JP
Konami Holdings Corp
TSE:9766
28.3
39%
KR
Krafton Inc
KRX:259960
17.2
80%
EV/EBIT Multiple
EBIT Growth
CN
The9 Ltd
NASDAQ:NCTY
Average EV/EBIT: 17.6
Negative Multiple: -1.8
N/A
US
A
Activision Blizzard Inc
LSE:0H8X
28.9
153%
JP
Nintendo Co Ltd
TSE:7974
16.7
N/A
CN
NetEase Inc
NASDAQ:NTES
8.5
48%
SG
Sea Ltd
NYSE:SE
Negative Multiple: -1 486.5
477%
US
Electronic Arts Inc
NASDAQ:EA
25.6
82%
US
Roblox Corp
NYSE:RBLX
Negative Multiple: -24.5 N/A
US
Take-Two Interactive Software Inc
NASDAQ:TTWO
Negative Multiple: -75.8 N/A
JP
N
Nexon Co Ltd
TSE:3659
12.7
N/A
JP
Konami Holdings Corp
TSE:9766
18.4
N/A
KR
Krafton Inc
KRX:259960
12.1
46%

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