Archosaur Games Valuation

Is 9990 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9990 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9990 (HK$1.25) is trading above our estimate of fair value (HK$0.05)

Significantly Below Fair Value: 9990 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9990?

Key metric: As 9990 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 9990. This is calculated by dividing 9990's market cap by their current revenue.
What is 9990's PS Ratio?
PS Ratio1x
SalesCN¥945.67m
Market CapCN¥964.03m

Price to Sales Ratio vs Peers

How does 9990's PS Ratio compare to its peers?

The above table shows the PS ratio for 9990 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
2100 BAIOO Family Interactive
1xn/aHK$679.5m
6820 FriendTimes
1.3x18.8%HK$1.4b
434 Boyaa Interactive International
6.2xn/aHK$2.8b
2458 Gala Technology Holding
0.9xn/aHK$552.0m
9990 Archosaur Games
1x26.4%HK$1.0b

Price-To-Sales vs Peers: 9990 is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (2.4x).


Price to Sales Ratio vs Industry

How does 9990's PS Ratio compare vs other companies in the HK Entertainment Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
6860 FingerTango
0.3xn/aUS$24.64m
491 Emperor Culture Group
0.3xn/aUS$18.58m
1132 Orange Sky Golden Harvest Entertainment (Holdings)
0.2xn/aUS$15.83m
571 eSun Holdings
0.07xn/aUS$10.38m
9990 1.0xIndustry Avg. 1.5xNo. of Companies10PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 9990 is good value based on its Price-To-Sales Ratio (1x) compared to the Hong Kong Entertainment industry average (1.5x).


Price to Sales Ratio vs Fair Ratio

What is 9990's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9990 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: 9990 is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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