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NetDragon Websoft Holdings (0777) Fair Value & Analysis

Communication Services · HK · Market cap HK$3.8B

NW NetDragon Websoft Holdings 0777 · HK
PriceHK$7.52
Fair ValueHK$8.34
Upside+11.0%
Quality59/100
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Mixed Growth
Thin margins · 3.4% net margin
Low debt · generates free cash flow
12.54% dividend yield
Mixed vs. peers (8/14)
Narrow moat 27/100
Evidence: High Range HK$5.51 – HK$9.18 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$8.33 to HK$8.34 (+0.1%) since Aug 5, 2026. Share price −2.4% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • Our model range runs from HK$5.51 (bear) to HK$9.18 (bull), base HK$8.34. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 59/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$15.31 HK$6.93 Fair Value HK$8.34 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$6.93 – HK$15.31 · fair‑value band HK$5.51 – HK$9.18 · the HK$7.52 price screens below the HK$8.34 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

NetDragon Websoft Holdings (0777) currently trades at HK$7.52, while our model-based Fair Value estimate is HK$8.34, implying the stock looks roughly 11.0% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, NetDragon Websoft Holdings generated revenue of HK$4.5B at a net margin of 3.4%. Revenue declined 23.7% year over year. It earns a return on equity of 0.6%. The balance sheet holds a net cash position of HK$784M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$5.51 (bear case) to HK$9.18 (bull case); at HK$7.52, the current price sits within 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 53% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -25% fair-value upside, at 11%, 0777 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 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$13.61 HK$18.75 HK$27.30 80
Residual Income HK$7.32 HK$7.01 HK$5.71 76
Rev-Margin DCF HK$12.38 HK$16.41 HK$21.80 74
All 24 models by family
DCF Models
FCF DCF HK$13.73 HK$19.58 HK$29.79 38
Owner Earnings HK$17.86 HK$27.24 HK$43.63 31
5Y Revenue Exit HK$12.38 HK$16.52 HK$22.20 39
5Y EBITDA Exit HK$16.89 HK$26.09 HK$38.01 41
5Y P/E Exit HK$12.10 HK$15.91 HK$20.33 38
10Y Revenue Exit HK$12.62 HK$16.71 HK$23.14 36
10Y EBITDA Exit HK$15.74 HK$23.69 HK$36.48 37
10Y P/E Exit HK$12.60 HK$16.27 HK$21.57 35
Earnings-Based
Graham-Dodd HK$1.95 HK$10.04 HK$13.88 54
Lynch FV HK$2.74 HK$3.91 HK$5.09 50
PEG = 1.0 HK$2.74 HK$3.91 HK$5.09 46
EPV HK$9.33 HK$9.71 HK$10.04 59
Multiples
P/E Multiple HK$4.74 HK$6.31 HK$7.89 63
P/S Multiple HK$3.66 HK$4.88 HK$6.10 58
P/B Multiple HK$3.66 HK$4.88 HK$6.10 55
EV/EBIT HK$13.29 HK$15.42 HK$17.55 53
EV/EBITDA HK$19.26 HK$23.37 HK$27.49 54
EV/Revenue HK$11.75 HK$13.83 HK$15.90 43
Asset-Based
NCAV (Graham) HK$5.17 HK$6.92 HK$10.33 50
Growth DCF
Growth DCF HK$13.61 HK$18.75 HK$27.30 80
Rev-Margin DCF HK$12.38 HK$16.41 HK$21.80 74
Economic Profit
Residual Income HK$7.32 HK$7.01 HK$5.71 76
ROIC Compounder HK$9.33 HK$9.71 HK$10.04 72
Growth Earnings
Growth-Adj P/E HK$4.22 HK$6.03 HK$7.84 68

Widest divergence: DCF Models (HK$16.71) versus Earnings-Based (HK$3.91). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$4.5B
Revenue growth (YoY) -23.7%
Net margin 3.4%
Return on equity 0.6%
Free cash flow HK$282M FY2025
P/E ratio 21.6 as of Jul 2, 2026
More key figures
Operating margin 8.6%
EPS (TTM) HK$0.0600
Dividend yield 12.5%
EPS growth (YoY) -92.6%
Net cash HK$784M FY2025

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 32

Profitability 31
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 86
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

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

NetDragon Websoft Holdings reported revenue of HK$4.5B in FY2025 versus HK$7.0B in FY2021, a compound −10.7%/yr. Reported net income was HK$151M in FY2025, compounding −38.6%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$4.5B
Latest YoY
−26.0%
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.
−17.1%
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.
−6.1%
Avg. growth/yr (20Y) 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.
+27.4%
Revenue −10.7%/yr
FY21 HK$7.0B
FY22 HK$7.9B
FY23 HK$7.1B
FY24 HK$6.0B
FY25 HK$4.5B
Net income −38.6%/yr
FY21 HK$1.1B
FY22 HK$834M
FY23 HK$550M
FY24 HK$311M
FY25 HK$151M

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Cite: Fair Value Calculator (2026). "NetDragon Websoft Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0777

Peer Group

Electronic Gaming & Multimedia · 155 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 59 · Above median
Fair Value upside +11% · Above median
Return on equity (TTM) 1% · Below median
Return on assets 3% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 9% · Above median
Revenue growth -24% · Bottom 25%
Dividend yield (TTM) 12.5% · Top 25%

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 21.6× · Pricier than median
P/B 0.69× · Cheaper than median
P/S (TTM) 0.84× · Cheaper than median
P/FCF 1.7× · Pricier than median
PEG 10.35× · Pricier than 75% of peers

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 48 · sector 21
FUTURE 0 · sector 7
PAST 3 · sector 9
HEALTH 100 · sector 99
DIVIDEND 100 · sector 54

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 Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
NetEase, Inc 9999 HK$192.50 HK$262.75 +36%
Electronic Arts Inc EA $209.70 $76.57 -63%
Take-Two Interactive Software, Inc TTWO $243.00 $60.20 -75%
Roblox Corporation RBLX $36.22 $21.20 -41%
Zhejiang Century Huatong Group 002602 ¥14.29 ¥14.68 +3%
KRAFTON, Inc 259960 234,500 KRW 356,218 KRW +52%
Giant Network Group 002558 ¥28.57 ¥15.50 -46%
International Games System Co 3293 762.00 TWD 568.16 TWD -25%
37 Interactive Entertainment Network Technology Group 002555 ¥19.21 ¥22.29 +16%
Kingnet Network Co 002517 ¥17.36 ¥12.86 -26%

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Frequently asked questions

Is NetDragon Websoft Holdings (0777) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$8.34 versus a price of HK$7.52, about +11% (undervalued).
What is the fair value of 0777?
Our model-based fair value for NetDragon Websoft Holdings is HK$8.34 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$7.52.
What is the quality score of 0777?
NetDragon Websoft Holdings has a Quality Score of 59/100. 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 NetDragon Websoft Holdings (0777)?
NetDragon Websoft Holdings reported trailing-twelve-month revenue of about HK$4.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0777?
The net profit margin of NetDragon Websoft Holdings is about 3.4%, meaning it keeps roughly 3.4% of revenue as net income. Based on the latest reported figures.
Does NetDragon Websoft Holdings pay a dividend?
NetDragon Websoft Holdings currently shows a dividend yield of about 12.54% relative to its recent price (as of Aug 13, 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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