NetDragon Websoft Inc (0777) fair value: what the stock is really worth
As of Nov 13, 2026: fair value (intrinsic value) of NetDragon Websoft Inc stock HK$8.22, price HK$7.75, upside +6.1%, quality 60 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.
How to read this chart
60‑month range HK$6.93 – HK$15.31 · fair‑value band HK$8.22 – HK$9.76 · the HK$7.75 price screens below the HK$8.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.
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NetDragon Websoft Holdings Limited provides online and mobile games the People's Republic of China, the United States, Germany, the United Kingdom, Spain, France, and internationally. It operates through the Gaming and Application Services, Mynd.ai Business, and Property Development segments.
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The company's games for kids include JumpStart, School of Dragons, Neopets, World of Madagascar, and Math Blaster; and other games comprise Eudemons Online, Conquer Online, Way of the Five, Conquer Online, and Heroes Evolved.
It also licenses and services developed games; sells education hardware and software products, as well as engages in the products and marketing business, mobile solutions business, and operation and development of online education business.
The company was founded in 1999 and is headquartered in Fuzhou, China.
Stock analysis
NetDragon Websoft Inc (0777) currently trades at HK$7.75, while our model-based Fair Value estimate is HK$8.22, so the stock looks roughly fairly valued today (gap 5.7%).
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Valuation
Bull case: the DCF Models group reads highest at a median of HK$18.45 per share, and 20 of the 26 models we run sit above the HK$7.75 price.
Bear case: the Asset-Based group reads lowest at HK$4.44, and 6 of the 26 models stay below the price. Data coverage for this calculation is low.
Scenario range: HK$8.22 (bear) to HK$9.76 (bull), the price of HK$7.75 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Communication Services sector.
Mixed Growth: Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
NetDragon Websoft Inc reported revenue of 4.5B CNY in FY2025 versus 7.0B CNY in FY2021, a compound −10.7%/yr. Reported net income was 151M CNY in FY2025, compounding −38.6%/yr from FY2021.
Key figures
Market cap HK$4.1B (≈ $520M) Small · P/E ratio 23.0 · P/S ratio 0.78 · Dividend yield 13.3% · Net margin 3.4% · Return on equity 1.1% · Return on assets (EBIT) 8.2% (5-year average) · Operating margin 15.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 34 out of 100 (low confidence).
What moves the price
The share trades about 31% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 37% fair-value upside, at 6%, 0777 screens richer than that median.
Fair Value models
BearHK$8.22Fair Value HK$8.22BullHK$9.76
Price HK$7.75 · Upside +6.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−16.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−30.0%
Dividend (yield on the price)13.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−30.0% vs −1.8%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 6%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.5%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in CNY, China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about −8.0% a year for the price.
News mood ⓘNews mood, the average tone of recent news (89 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Electronic Gaming & Multimedia · 180 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is NetDragon Websoft Inc (0777) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of HK$8.22 versus a price of HK$7.75, about +6% upside (fairly valued).
What is the fair value of 0777?
Our model-based fair value for NetDragon Websoft Inc is HK$8.22 (as of Nov 12, 2026), built from audited fundamentals. The current price: HK$7.75.
What is the quality score of 0777?
NetDragon Websoft Inc has a Quality Score of 60/100. 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 price target for NetDragon Websoft Inc (0777)?
Our model-based price target is the fair value of HK$8.22 (as of Nov 12, 2026) from 26 valuation models. Cautious scenario HK$8.22, optimistic scenario HK$9.76. It is a calculation from audited fundamentals, not an analyst target.
What is the NetDragon Websoft Inc stock forecast for 2026?
Our models put fair value at HK$8.22, about +6% upside versus a price of HK$7.75 (fairly valued). Cautious scenario HK$8.22, optimistic scenario HK$9.76. The calculation is refreshed regularly with new filings.
What is the revenue of NetDragon Websoft Inc (0777)?
NetDragon Websoft Inc reported trailing-twelve-month revenue of about 4.2B CNY (latest available figure, as of Nov 12, 2026).
Does NetDragon Websoft Inc pay a dividend?
NetDragon Websoft Inc currently shows a dividend yield of 13.30% relative to its recent price (as of Nov 12, 2026).
How much is the dividend of NetDragon Websoft Inc (0777) and when is the ex-dividend date?
NetDragon Websoft Inc pays a dividend of HK$1.03 per share a year, a dividend yield of 13.3%. The last ex-dividend date was Sep 9, 2026. A dividend has been paid every year since at least 2008. Free cash flow covers the dividend 0.61 times. Our assessment: Pays more than it earns. The company pays out more in dividends than it earns, and free cash flow clearly does not cover the dividend either. It may need to be cut unless profits recover.
What growth is priced into NetDragon Websoft Inc (0777)?
Today's price is already fair in a discounted-cash-flow model if free cash flow at NetDragon Websoft Inc shrinks by 6.5 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue fell 6.1 % per year. As of Nov 12, 2026.
What discount rate (WACC) does the fair value of 0777 use?
Our models discount NetDragon Websoft Inc at 10.3 %: a base by market capitalisation (small), damped by beta 0.31, country premium for Hong Kong. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For NetDragon Websoft Inc that is -6.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has NetDragon Websoft Inc (0777) delivered so far?
Over the past 5 years revenue at NetDragon Websoft Inc shrank 6.1 % a year. The price currently implies free-cash-flow growth of -6.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of NetDragon Websoft Inc (0777) growing?
The median revenue growth in the sector is +3.9 % a year. That is the yardstick for the growth priced into NetDragon Websoft Inc (-6.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of NetDragon Websoft Inc (0777)?
The free-cash-flow yield on the price is 8.12 %: that much free cash flow NetDragon Websoft Inc produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of NetDragon Websoft Inc (0777)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For NetDragon Websoft Inc it is HK$8.22 per share (as of Nov 12, 2026), against a price of HK$7.75. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is NetDragon Websoft Inc stock overvalued or undervalued in 2026?
As of Nov 12, 2026, 0777 trades below its calculated fair value: price HK$7.75, fair value HK$8.22, a gap of about +6% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0777?
No. The price is what the market pays today (HK$7.75); the fair value is what the company's own numbers justify (HK$8.22). For NetDragon Websoft Inc the two are HK$0.4700 per share apart. That gap is exactly why we show both numbers side by side.
How much is NetDragon Websoft Inc worth?
The market values NetDragon Websoft Inc at about HK$4.1B (market capitalisation, as of Nov 12, 2026). Per share that is HK$7.75; our models calculate a fair value of HK$8.22 per share.
What do the bullish and bearish scenarios say about 0777?
Our models span a range for NetDragon Websoft Inc: cautious scenario HK$8.22, base HK$8.22, optimistic HK$9.76 per share (as of Nov 12, 2026, price HK$7.75). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 0777?
NetDragon Websoft Inc trades at a price-to-earnings ratio of 23.0 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of HK$8.22 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2018 to 2025), reported earnings, FY2025 ex one-offs: 10.6. Other multiples: PEG 10.4, P/B 0.6, P/S 1.0.
What is the PEG ratio of 0777?
The PEG ratio of NetDragon Websoft Inc is 10.35 (P/E divided by earnings growth, as of Nov 12, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of NetDragon Websoft Inc (0777)?
Balance-sheet figures for NetDragon Websoft Inc (as of Nov 12, 2026): return on equity 1.1%. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is 0777 from its 52-week high?
NetDragon Websoft Inc trades at HK$7.75, about 31% below its 52-week high of HK$11.21 and 12% above the low of HK$6.93 (as of Nov 13, 2026). Distance from the high says nothing about value: that is what the fair value of HK$8.22 is for.
Which stocks are comparable to NetDragon Websoft Inc?
From the same area (Communication Services) we also value NetEase, Inc, Take-Two Interactive Software, Inc, Roblox Corporation, Zhejiang Century Huatong Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is NetDragon Websoft Inc stock attractive at the current price?
The data as of Nov 12, 2026: price HK$7.75, calculated fair value HK$8.22 (+6%), Quality Score 60/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0777 calculated?
We run NetDragon Websoft Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of HK$8.22 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1% above its aggregate fair value. NetDragon Websoft Inc currently trades 6% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of NetDragon Websoft Inc (0777)?
The closing price on Nov 13, 2026 was HK$7.75. Our model-based fair value is HK$8.22, about +6% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with NetDragon Websoft Inc right now?
The price is below even our cautious bear case (HK$8.22). The market is more pessimistic than our downside scenario. The price sits close to our fair value, market and models broadly agree here, little valuation tension. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Key figures of NetDragon Websoft Inc
How large is the market capitalisation of NetDragon Websoft Inc (0777)?
The market capitalisation of NetDragon Websoft Inc is HK$4.1B (≈ $520M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of NetDragon Websoft Inc (0777)?
The price-to-sales ratio of NetDragon Websoft Inc is 0.78 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the dividend yield of NetDragon Websoft Inc (0777)?
The dividend yield of NetDragon Websoft Inc is 13.3%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of NetDragon Websoft Inc (0777)?
The net margin of NetDragon Websoft Inc is 3.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of NetDragon Websoft Inc (0777)?
The return on equity (ROE) of NetDragon Websoft Inc is 1.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of NetDragon Websoft Inc (0777)?
On an EBIT basis the return on assets of NetDragon Websoft Inc is 8.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of NetDragon Websoft Inc (0777)?
The operating margin of NetDragon Websoft Inc is 15.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at NetDragon Websoft Inc (0777)?
Revenue at NetDragon Websoft Inc is down 12.2% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at NetDragon Websoft Inc (0777)?
Earnings per share at NetDragon Websoft Inc are growing 22.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does NetDragon Websoft Inc (0777) hold?
NetDragon Websoft Inc holds more cash than debt, 784M CNY net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Nov 12, 2026