Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
In this section, we usually try to help investors determine whether The9 is trading at an attractive price based on the cash flow it is expected to produce in the future. But as The9 has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
The9. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
The9's earnings available for a low price, and how does
this compare to other companies in the same industry?
The9 has negative assets, we can't compare the value of its assets to the US Entertainment industry average.
Take a look at our analysis of NCTY’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through The9's regulatory filings and announcements.
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as The9 has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Entertainment industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare The9's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare The9's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare The9's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if The9 is high growth as no earnings estimate data is available.
Unable to determine if The9 is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
The9's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Jun Zhu co-founded the The9 Limited and has been its Chief Executive Officer since October 2002 and served as its President since May 16, 2010. Under Mr. Zhu's leadership, The9 has grown to become one of the top three online game operators in China. Mr. Zhu serves as the Chief Executive Officer of Red 5 Singapore at Red 5 Studios, Inc. Mr. Zhu co-founded Flagholder New Technology Co. Ltd., an information technology company based in China, in 1997. From 1993 to 1997, he served at QJ (U.S.A.) Investment, Ltd., a trading company in the United States. He has been the Chairman and Director of The9 Limited at Red 5 Studios, Inc. since October 2002. He served as Director of Infocomm Asia Holdings Pte. Ltd. He served as a Director of Flagholder New Technology Co. Ltd. from 1997 to 1999. Mr. Zhu attended an undergraduate program at Shanghai Jiao Tong University.
Insufficient data for Jun to compare compensation growth.
Jun's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the The9 management team is over 5 years, this suggests they are a seasoned and experienced team.
CFO & Director
Manager of Investor Relations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the The9 board of directors is over 10 years, this suggests they are a seasoned and experienced board.
The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People’s Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China.
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