MODEL VERDICT
The9 Limited (NCTY)
Relative Valuation•Peer multiples, Monte Carlo simulation & quality-adjusted fair value
Popular:
Composite score derived from valuation, quality, and risk factors
Quantitative model thresholds · For educational and research purposes only
Each row records the model's monthly assessment. High Conviction = the model detected notable undervaluation vs peers. Neutral = no notable divergence was found. The return column shows the actual price change over 90 days for reference. This is a quantitative observation log — not investment advice.
| Date | Assessment | Score | Price | Status | 90d Fwd Return |
|---|---|---|---|---|---|
| Feb 28, 2026 | MODERATE | 0.62 | $5.63 | CURRENT | -7.1% |
Historical model observations for research purposes only. Past quantitative patterns do not predict future results. Not a recommendation to buy, sell, or hold any security.
| Methodology | Fair Value | vs Current | Weight | Quality | Status |
|---|---|---|---|---|---|
| EV To Revenue 10 industry peers | $160.68 | +2754.0% | 4% | B | Data |
| Price / Sales 10 industry peers | $184.50 | +3177.1% | 3% | B | Model Driven |
| Weighted Output Blended model output | $533.92 | +9383.4% | 100% | 58 | SIGNIFICANTLY UNDERVALUED |
Cross-sectional regression predicting expected multiples based on growth, margins, ROIC, and beta.
| Multiple | Avg | Median | Min | Max | Std |
|---|---|---|---|---|---|
| P/TBV | 0.25 | 0.18 | 0.14 | 0.50 | 0.17 |
| P/B Ratio | 0.25 | 0.18 | 0.14 | 0.50 | 0.17 |
| P/S Ratio | 18.34 | 0.81 | 0.13 | 94.52 | 35.44 |
Based on our peer multiples analysis with 5 valuation metrics, the model estimates NCTY's fair value at $533.92 vs the current price of $5.63, implying +9383.4% upside potential. Model verdict: Significantly Undervalued. Confidence: 58/100. This is a quantitative estimate, not a recommendation.
The blended fair value of $533.92 is calculated using four lenses: industry median multiples (40%), historical multiples (30%), forward estimates (20%), and quality-adjusted multiples (10%). Monte Carlo simulation (10,000 iterations) gives a range of $89.64 (P10) to $899.23 (P90), with a median of $351.26.
NCTY's current P/E of -2.5x compares to the industry median of 23.4x (4 peers in the group). This represents a -110.5% discount to the industry. The historical average P/E is N/Ax over 0 years. Signal: Deep Discount.
3 analysts cover NCTY with a consensus rating of Sell. The consensus price target is N/A (range: N/A — N/A), implying N/A upside from the current price. Grade breakdown: Strong Buy (0), Buy (0), Hold (0), Sell (3), Strong Sell (0).
The model confidence score is 58/100, based on: data completeness (6), peer quality (25), historical depth (20), earnings stability (5), and model agreement (2). Cyclicality penalty: -0 points. The model shows moderate agreement across inputs.
The model flags several key risks: (1) Macro/regulatory risks are not captured in this model but remain material.
Peak earnings risk data is not available for NCTY.
No. This dashboard is a quantitative research tool for educational and informational purposes only. It is not investment advice, a solicitation, or a recommendation to buy, sell, or hold any security. The operator of this platform is not a registered investment advisor (RIA), broker-dealer, or financial planner. All model outputs, fair value estimates, signals, and scenarios are the result of automated quantitative computations and should not be construed as professional financial guidance. You should consult a qualified, licensed financial advisor before making any investment decisions. Past model performance is not indicative of future results.