Newborn Town Valuation
Is 9911 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of 9911 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 9911 (HK$3.77) is trading below our estimate of fair value (HK$9.46)
Significantly Below Fair Value: 9911 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 9911?
Key metric: As 9911 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 9911's PE Ratio? | |
|---|---|
| PE Ratio | 7.4x |
| Earnings | CN¥552.22m |
| Market Cap | CN¥4.22b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.8x |
| Enterprise Value/EBITDA | 4.8x |
| PEG Ratio | 0.4x |
Price to Earnings Ratio vs Peers
How does 9911's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 46.8x | ||
1675 AsiaInfo Technologies | 19.1x | 17.8% | HK$5.3b |
596 Inspur Digital Enterprise Technology | 13x | 38.8% | HK$3.7b |
2531 GL-Carlink Technology Holding | 150.3x | n/a | HK$8.7b |
1745 Lvji Technology Holdings | 4.6x | n/a | HK$700.1m |
9911 Newborn Town | 7.4x | 21.0% | HK$4.5b |
Price-To-Earnings vs Peers: 9911 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (46.8x).
Price to Earnings Ratio vs Industry
How does 9911's PE Ratio compare vs other companies in the Asian Software Industry?
| 8 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 8 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: 9911 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the Asian Software industry average (28.9x).
Price to Earnings Ratio vs Fair Ratio
What is 9911's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 7.4x |
| Fair PE Ratio | 13.1x |
Price-To-Earnings vs Fair Ratio: 9911 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | HK$3.77 | HK$4.49 +19.0% | 15.9% | HK$5.79 | HK$3.77 | n/a | 5 |
| Nov ’25 | HK$3.65 | HK$4.31 +18.0% | 18.2% | HK$5.81 | HK$3.35 | n/a | 6 |
| Oct ’25 | HK$3.67 | HK$4.37 +19.2% | 18.8% | HK$5.88 | HK$3.39 | n/a | 7 |
| Sep ’25 | HK$2.89 | HK$4.34 +50.1% | 20.1% | HK$5.70 | HK$3.28 | n/a | 7 |
| Aug ’25 | HK$3.14 | HK$4.34 +38.2% | 20.1% | HK$5.70 | HK$3.28 | n/a | 7 |
| Jul ’25 | HK$4.48 | HK$4.14 -7.5% | 21.9% | HK$5.38 | HK$3.28 | n/a | 5 |
| Jun ’25 | HK$3.79 | HK$3.93 +3.6% | 22.1% | HK$5.40 | HK$3.30 | n/a | 4 |
| May ’25 | HK$3.41 | HK$3.83 +12.2% | 18.1% | HK$5.00 | HK$3.30 | n/a | 4 |
| Apr ’25 | HK$2.48 | HK$3.84 +54.7% | 10.7% | HK$4.46 | HK$3.31 | n/a | 4 |
| Mar ’25 | HK$1.80 | HK$3.76 +109.0% | 14.6% | HK$4.49 | HK$2.94 | n/a | 4 |
| Feb ’25 | HK$1.81 | HK$3.76 +107.9% | 14.6% | HK$4.49 | HK$2.94 | n/a | 4 |
| Jan ’25 | HK$1.94 | HK$3.74 +92.8% | 14.6% | HK$4.45 | HK$2.91 | n/a | 4 |
| Dec ’24 | HK$2.09 | HK$3.74 +79.0% | 14.6% | HK$4.45 | HK$2.91 | n/a | 4 |
| Nov ’24 | HK$2.24 | HK$3.40 +51.7% | 22.8% | HK$4.40 | HK$2.19 | HK$3.65 | 5 |
| Oct ’24 | HK$2.06 | HK$3.15 +52.8% | 20.9% | HK$3.79 | HK$2.19 | HK$3.67 | 4 |
| Sep ’24 | HK$1.60 | HK$2.76 +72.7% | 16.1% | HK$3.40 | HK$2.21 | HK$2.89 | 4 |
| Aug ’24 | HK$1.51 | HK$2.73 +80.5% | 16.9% | HK$3.50 | HK$2.28 | HK$3.14 | 4 |
| Jul ’24 | HK$1.47 | HK$2.73 +85.4% | 16.9% | HK$3.50 | HK$2.28 | HK$4.48 | 4 |
| Jun ’24 | HK$1.43 | HK$2.73 +90.6% | 16.9% | HK$3.50 | HK$2.28 | HK$3.79 | 4 |
| May ’24 | HK$1.69 | HK$2.96 +75.2% | 17.2% | HK$3.60 | HK$2.34 | HK$3.41 | 4 |
| Apr ’24 | HK$1.68 | HK$3.16 +88.2% | 13.2% | HK$3.59 | HK$2.59 | HK$2.48 | 3 |
| Mar ’24 | HK$1.74 | HK$3.58 +105.7% | 17.9% | HK$4.46 | HK$2.95 | HK$1.80 | 3 |
| Jan ’24 | HK$1.89 | HK$3.63 +92.3% | 19.9% | HK$4.36 | HK$2.91 | HK$1.94 | 2 |
| Dec ’23 | HK$1.61 | HK$3.63 +125.7% | 19.9% | HK$4.36 | HK$2.91 | HK$2.09 | 2 |
| Nov ’23 | HK$1.23 | HK$3.63 +195.5% | 19.9% | HK$4.36 | HK$2.91 | HK$2.24 | 2 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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