iQIYI Valuation

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

Valuation Score

5/6

Valuation 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 IQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IQ ($4.03) is trading below our estimate of fair value ($9.58)

Significantly Below Fair Value: IQ is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA3.5x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does IQ's PE Ratio compare to its peers?

The above table shows the PE ratio for IQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.5x
MSGS Madison Square Garden Sports
114.8x22.0%US$4.4b
SPHR Sphere Entertainment
12.1x-46.0%US$1.7b
EDR Endeavor Group Holdings
21.5x19.9%US$11.9b
TME Tencent Music Entertainment Group
25.4x13.4%US$17.3b
IQ iQIYI
14.5x19.6%US$3.9b

Price-To-Earnings vs Peers: IQ is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (43.5x).


Price to Earnings Ratio vs Industry

How does IQ's PE Ratio compare vs other companies in the US Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: IQ is good value based on its Price-To-Earnings Ratio (14.5x) compared to the US Entertainment industry average (21.5x).


Price to Earnings Ratio vs Fair Ratio

What is IQ'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.

IQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: IQ is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).


Analyst Price Targets

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

The above table shows the analyst IQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.03
US$6.03
+49.5%
28.5%US$10.00US$3.57n/a22
Mar ’25US$3.82
US$6.03
+57.8%
28.5%US$10.00US$3.57n/a22
Feb ’25US$3.29
US$6.24
+89.8%
26.8%US$10.07US$3.59n/a22
Jan ’25US$4.88
US$6.88
+40.9%
20.3%US$10.04US$5.02n/a23
Dec ’24US$4.40
US$6.80
+54.5%
20.7%US$10.02US$5.01n/a24
Nov ’24US$4.66
US$7.20
+54.5%
21.3%US$10.00US$5.11n/a24
Oct ’24US$4.74
US$7.36
+55.3%
19.3%US$10.02US$5.02n/a23
Sep ’24US$5.11
US$7.97
+56.0%
37.9%US$20.99US$5.04n/a25
Aug ’24US$6.12
US$8.40
+37.2%
37.0%US$21.36US$5.13n/a24
Jul ’24US$5.34
US$8.26
+54.6%
38.2%US$21.16US$2.80n/a24
Jun ’24US$4.18
US$8.47
+102.6%
38.7%US$21.62US$2.80n/a23
May ’24US$6.15
US$9.15
+48.8%
36.5%US$22.29US$2.80n/a23
Apr ’24US$7.28
US$9.16
+25.8%
36.4%US$22.28US$2.81n/a23
Mar ’24US$6.85
US$8.98
+31.1%
40.0%US$22.28US$2.82US$3.8221
Feb ’24US$7.31
US$5.50
-24.8%
33.9%US$10.32US$2.97US$3.2920
Jan ’24US$5.30
US$4.83
-8.9%
37.4%US$9.99US$2.66US$4.8821
Dec ’23US$2.91
US$4.44
+52.7%
45.3%US$10.18US$2.54US$4.4021
Nov ’23US$2.13
US$4.75
+123.1%
36.1%US$9.59US$2.49US$4.6620
Oct ’23US$2.71
US$4.91
+81.1%
34.5%US$9.61US$2.80US$4.7420
Sep ’23US$3.71
US$5.46
+47.0%
41.4%US$11.77US$2.79US$5.1120
Aug ’23US$3.55
US$6.10
+71.7%
36.4%US$12.01US$3.27US$6.1218
Jul ’23US$4.37
US$6.07
+38.8%
36.4%US$12.01US$3.29US$5.3418
Jun ’23US$4.02
US$6.17
+53.4%
36.5%US$12.08US$3.31US$4.1818
May ’23US$3.56
US$5.73
+61.0%
42.3%US$12.17US$1.92US$6.1517
Apr ’23US$4.78
US$6.30
+31.9%
36.9%US$12.40US$2.00US$7.2817
Mar ’23US$5.03
US$6.99
+38.9%
42.6%US$15.58US$3.73US$6.8518

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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