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Perfect World Co (002624) Fair Value & Analysis

Communication Services · CN · Market cap 25.7B CNY

PW Perfect World Co 002624 · SHE
Price¥11.49
Fair Value¥8.29
Upside-27.9%
Quality74/100
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Weak Growth
Thin margins · 9.2% net margin
Low debt · generates free cash flow
2.50% dividend yield
Mixed vs. peers (7/15)
Moderate moat 46/100
Evidence: High Range ¥6.22 – ¥10.36 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥8.57 to ¥8.29 (−3.3%) since Jun 25, 2026. Share price −2.4% over the past month.

A solid business, but screening 28% overvalued on our models.

What matters now

  • A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥10.36). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥21.92 ¥6.73 Fair Value ¥8.29 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥6.73 – ¥21.92 · fair‑value band ¥6.22 – ¥10.36 · the ¥11.49 price screens above the ¥8.29 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Perfect World Co (002624) currently trades at ¥11.49, while our model-based Fair Value estimate is ¥8.29, implying the stock looks roughly 27.9% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Perfect World Co generated revenue of 5.8B CNY at a net margin of 9.2%. Revenue declined 42.1% year over year. It earns a return on equity of 6.8%. The balance sheet holds a net cash position of 2.5B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥6.22 (bear case) to ¥10.36 (bull case); at ¥11.49, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 50% below its 52-week high, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -52% fair-value upside, at -28%, 002624 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥7.28 ¥11.76 ¥19.61 80
Residual Income ¥3.27 ¥3.64 ¥5.50 76
Rev-Margin DCF ¥7.06 ¥11.25 ¥16.85 74
All 26 models by family
DCF Models
FCF DCF ¥7.37 ¥12.40 ¥21.54 38
Owner Earnings ¥6.46 ¥10.66 ¥18.30 31
5Y Revenue Exit ¥7.06 ¥11.40 ¥17.42 39
5Y EBITDA Exit ¥7.48 ¥12.29 ¥18.46 41
5Y P/E Exit ¥7.55 ¥12.43 ¥18.16 38
10Y Revenue Exit ¥6.94 ¥11.16 ¥17.92 36
10Y EBITDA Exit ¥7.40 ¥11.82 ¥18.82 37
10Y P/E Exit ¥7.45 ¥11.92 ¥18.56 35
Earnings-Based
Graham-Dodd ¥2.56 ¥13.22 ¥18.28 54
Lynch FV ¥3.61 ¥5.16 ¥6.71 50
PEG = 1.0 ¥3.61 ¥5.16 ¥6.71 46
EPV ¥5.80 ¥6.47 ¥7.05 59
Dividend Discount
Gordon GGM ¥2.06 ¥4.27 ¥6.78 70
DDM Multi-Stage ¥2.06 ¥3.60 ¥4.49 61
Multiples
P/E Multiple ¥6.22 ¥8.29 ¥10.36 63
P/S Multiple ¥4.80 ¥6.40 ¥8.01 58
P/B Multiple ¥4.80 ¥6.40 ¥8.01 55
EV/EBIT ¥8.54 ¥10.79 ¥13.03 53
EV/EBITDA ¥7.93 ¥9.97 ¥12.01 54
EV/Revenue ¥6.92 ¥9.11 ¥11.29 43
Asset-Based
NCAV (Graham) ¥1.84 ¥2.46 ¥3.67 50
Growth DCF
Growth DCF ¥7.28 ¥11.76 ¥19.61 80
Rev-Margin DCF ¥7.06 ¥11.25 ¥16.85 74
Economic Profit
Residual Income ¥3.27 ¥3.64 ¥5.50 76
ROIC Compounder ¥6.44 ¥8.13 ¥10.34 72
Growth Earnings
Growth-Adj P/E ¥5.56 ¥7.94 ¥10.32 68

Widest divergence: DCF Models (¥11.82) versus Asset-Based (¥2.46). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.8B CNY
Revenue growth (YoY) -42.1%
Net margin 9.2%
Return on equity 6.8%
Free cash flow 799M CNY FY2025
P/E ratio 47.3
More key figures
Operating margin 9.0%
EPS (TTM) ¥0.2800
Dividend yield 2.5%
EPS growth (YoY) -68.8%
Net cash 2.5B CNY FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 73 · Market factors (momentum, volatility) 19

Profitability 52
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 5
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 67
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Perfect World Co., Ltd. engages in the research and development, distribution, and operation of online games in China and internationally. It is involved in developing film and television businesses, including TV series and short drama production. The company was formerly known as Perfect World Pictures Co., Ltd.

Full company description

Perfect World Co., Ltd. engages in the research and development, distribution, and operation of online games in China and internationally. It is involved in developing film and television businesses, including TV series and short drama production. The company was formerly known as Perfect World Pictures Co., Ltd. and changed its name to Perfect World Co., Ltd. in July 2016. Perfect World Co., Ltd. was founded in 1999 and is based in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Perfect World Co reported revenue of ¥6.7B in FY2025 versus ¥8.5B in FY2021, a compound −6.0%/yr. Reported net income was ¥731M in FY2025, compounding +18.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
6.7B CNY
Latest YoY
+19.6%
Avg. growth/yr (3Y)
−4.6%
Avg. growth/yr (5Y)
−8.2%
Avg. growth/yr (17Y)
+21.7%
Revenue −6.0%/yr
FY21 ¥8.5B
FY22 ¥7.7B
FY23 ¥7.8B
FY24 ¥5.6B
FY25 ¥6.7B
Net income +18.6%/yr
FY21 ¥369M
FY22 ¥1.4B
FY23 ¥491M
FY24 −¥1.3B
FY25 ¥731M

002624 screens 28% overvalued. Compare with Netflix, Inc →

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Cite: Fair Value Calculator (2026). "Perfect World Co Fair Value". https://www.fairvalue-calculator.com/stock/002624

Peer Group

Entertainment · 267 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 74 · Top 25%
Fair Value upside −28% · Below median
Return on equity (TTM) 7% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 9% · Above median
Revenue growth -42% · Bottom 25%
Dividend yield (TTM) 2.5% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Entertainment median · lower = cheaper

P/E (TTM) 47.3× · Pricier than 75% of peers
P/B 3.61× · Pricier than 75% of peers
P/S (TTM) 4.43× · Pricier than 75% of peers
P/FCF 4.8× · Pricier than median
EV/EBITDA 27.3× · Pricier than 75% of peers
PEG 1.49× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 9
FUTURE 0 · sector 10
PAST 27 · sector 0
HEALTH 100 · sector 97
DIVIDEND 50 · sector 44

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.77 C$2.96 -56%
The Walt Disney Company DIS $96.30 $89.55 -7%
Warner Bros. Discovery, Inc WBD $26.87 $9.13 -66%
Live Nation Entertainment, Inc LYV $178.44 $46.89 -74%
Universal Music Group UMG €18.91 €14.78 -22%
TKO Group TKO $184.40 $22.16 -88%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 60.49 MXN +10%
Beijing Enlight Media Co 300251 ¥11.77 ¥10.97 -7%
PT MNC Digital Entertainment Tbk, MSIN 456.00 IDR 221.09 IDR -52%
Prime Focus Limited PFOCUS ₹298.25 ₹63.45 -79%

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Frequently asked questions

Is Perfect World Co (002624) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥8.29 versus a price of ¥11.49, about −28% (overvalued).
What is the fair value of 002624?
Our model-based fair value for Perfect World Co is ¥8.29 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥11.49.
What is the quality score of 002624?
Perfect World Co has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Perfect World Co (002624)?
Perfect World Co reported trailing-twelve-month revenue of about 5.8B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002624?
The net profit margin of Perfect World Co is about 9.2%, meaning it keeps roughly 9.2% of revenue as net income. Based on the latest reported figures.
Does Perfect World Co pay a dividend?
Perfect World Co currently shows a dividend yield of about 2.50% relative to its recent price (as of Jul 22, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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