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Digital Domain Holdings (0547) Fair Value & Analysis

Communication Services · HK · Market cap HK$2.0B

DD Digital Domain Holdings 0547 · HK
PriceHK$0.2450
Fair ValueHK$0.0800
Upside-67.4%
Quality45/100
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Mixed Growth
Loss-making · -33.1% net margin
Moderate debt · generates free cash flow
Trails peers (2/12)
Narrow moat 0/100
Evidence: Low Range HK$0.0500 – HK$0.1100 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 2 days ago

Share price −2.0% over the past month.

Below-average quality, and screening another 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.1100). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$0.0500 to HK$0.1100) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$0.9500 HK$0.1260 Fair Value HK$0.0800 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.1260 – HK$0.9500 · fair‑value band HK$0.0500 – HK$0.1100 · the HK$0.2450 price screens above the HK$0.0800 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Digital Domain Holdings (0547) currently trades at HK$0.2450, while our model-based Fair Value estimate is HK$0.0800, implying the stock looks roughly 67.4% overvalued today. The Quality Score stands at 45/100 (below-average 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: low).

Over the trailing twelve months, Digital Domain Holdings generated revenue of HK$777M at a net margin of -33.1%. Revenue declined 0.1% year over year. It earns a return on equity of -88.6%. Net debt stands at HK$111M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.0500 (bear case) to HK$0.1100 (bull case); at HK$0.2450, 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 46% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -43% fair-value upside, at -67%, 0547 screens richer 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.1100 HK$0.1800 HK$0.2800 80
Rev-Margin DCF HK$0.1000 HK$0.1600 HK$0.2500 74
NCAV (Graham) HK$0.0200 HK$0.0200 HK$0.0300 50
All 7 models by family
DCF Models
FCF DCF HK$0.1200 HK$0.1800 HK$0.3200 38
5Y Revenue Exit HK$0.1000 HK$0.1700 HK$0.2500 39
10Y Revenue Exit HK$0.1100 HK$0.1700 HK$0.2600 36
Multiples
EV/Revenue HK$0.1000 HK$0.1300 HK$0.1600 43
Asset-Based
NCAV (Graham) HK$0.0200 HK$0.0200 HK$0.0300 50
Growth DCF
Growth DCF HK$0.1100 HK$0.1800 HK$0.2800 80
Rev-Margin DCF HK$0.1000 HK$0.1600 HK$0.2500 74

Widest divergence: DCF Models (HK$0.1700) versus Asset-Based (HK$0.0200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$777M
Revenue growth (YoY) -0.1%
Net margin -33.1%
Return on equity -88.6%
Free cash flow HK$59.4M FY2025
Operating margin -26.1%
More key figures
EPS (TTM) HK$-0.0100
Net debt HK$111M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 46 · Market factors (momentum, volatility) 26

Profitability 13
Margins and returns on capital today
Quality Growth 81
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 39
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

Digital Domain Holdings Limited, an investment holding company, engages in the media entertainment and trading business in Hong Kong, the People's Republic of China, the United States, Canada, the United Kingdom, India, and internationally.

Full company description

Digital Domain Holdings Limited, an investment holding company, engages in the media entertainment and trading business in Hong Kong, the People's Republic of China, the United States, Canada, the United Kingdom, India, and internationally. The company provides visual effects (VFX) production and post-production services, including visualization, pre-visualization, post-visualization, visual effects, computer graphics (CG), animation, motion capture, facial capture, virtual production, real-time game engine production, live action filming, editing, design, finishing for motion picture studios, networks, streaming services, advertisers, brands, and games. It also provides VFX production and post-production services for commercials, TV drama series, and feature films, including offline and online editing, compositing, color grading, design, music and audio, CG, and VFX production; and production services for commercials and feature films. In addition, the company is involved in development of virtual human technology; virtual human and reality content business; and investing and production of films. Further, it provides management, software development and research, and consultancy services, as well as digital human hospitality services; sells semiconductor memory chips and esports products; and invests in TV drama. The company was formerly known as Sun Innovation Holdings Limited and changed its name to Digital Domain Holdings Limited in December 2013. Digital Domain Holdings Limited was incorporated in 1992 and is headquartered in Central, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Digital Domain Holdings reported revenue of HK$777M in FY2025 versus HK$864M in FY2021, a compound −2.6%/yr. Reported net income was −HK$257M in FY2025.

Growth Quality 42/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$777M
Latest YoY
+24.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.3%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Revenue −2.6%/yr
FY21 HK$864M
FY22 HK$959M
FY23 HK$737M
FY24 HK$626M
FY25 HK$777M
Net income
FY21 −HK$722M
FY22 −HK$206M
FY23 −HK$395M
FY24 −HK$300M
FY25 −HK$257M

0547 screens 67% overvalued. Compare with Netflix, Inc →

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Cite: Fair Value Calculator (2026). "Digital Domain Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0547

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 45 · Below median
Fair Value upside −67% · Bottom 25%
Return on assets -9% · Bottom 25%
Net margin (TTM) -33% · Bottom 25%
Operating margin (TTM) -26% · Bottom 25%
Revenue growth -0% · Below median
Debt / equity 0.70× · Higher than 75% of peers

Valuation Multiples vs Entertainment median · lower = cheaper

P/B 0.93× · Cheaper than median
P/S (TTM) 0.32× · Cheaper than median
P/FCF 4.2× · Pricier than median
PEG 1.81× · 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 6
FUTURE 0 · sector 11
PAST 0 · sector 0
HEALTH 65 · sector 97
DIVIDEND 0 · 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 Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.08 C$2.66 -56%
The Walt Disney Company DIS $103.18 $80.62 -22%
Warner Bros. Discovery, Inc WBD $27.65 $9.03 -67%
Live Nation Entertainment, Inc LYV $185.33 $59.97 -68%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 59.14 MXN +8%
PT MNC Digital Entertainment Tbk, MSIN 370.00 IDR 212.14 IDR -43%
Prime Focus Limited PFOCUS ₹268.00 ₹63.45 -76%
JYP Entertainment Corporation 035900 46,000 KRW 82,382 KRW +79%
SM Entertainment Co 041510 75,500 KRW 208,415 KRW +176%
PVR INOX Limited PVRINOX ₹1,176 ₹467.91 -60%

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Frequently asked questions

Is Digital Domain Holdings (0547) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.0800 versus a price of HK$0.2450, about −67% (overvalued).
What is the fair value of 0547?
Our model-based fair value for Digital Domain Holdings is HK$0.0800 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.2450.
What is the quality score of 0547?
Digital Domain Holdings has a Quality Score of 45/100. 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 Digital Domain Holdings (0547)?
Digital Domain Holdings reported trailing-twelve-month revenue of about HK$777M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0547?
The net profit margin of Digital Domain Holdings is about -33.1%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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