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7Road Holdings (0797) Fair Value & Analysis

Communication Services · HK · Market cap HK$2.8B

7H 7Road Holdings 0797 · HK
PriceHK$0.7700
Fair ValueHK$0.3900
Upside-49.4%
Quality65/100
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Expensive Growth
Thin margins · 7.1% net margin
Low debt · negative free cash flow
Mixed vs. peers (7/13)
Moderate moat 48/100
Evidence: High Range HK$0.2900 – HK$0.4200 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 2 days ago

Share price −34.7% over the past month.

A solid business, but screening 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.4200). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$3.16 HK$0.2700 Fair Value HK$0.3900 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$0.2700 – HK$3.16 · fair‑value band HK$0.2900 – HK$0.4200 · the HK$0.7700 price screens above the HK$0.3900 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

7Road Holdings (0797) currently trades at HK$0.7700, while our model-based Fair Value estimate is HK$0.3900, implying the stock looks roughly 49.4% overvalued today. The Quality Score stands at 65/100 (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, 7Road Holdings generated revenue of HK$521M at a net margin of 7.1%. Revenue grew 106.5% year over year. It earns a return on equity of 2.1%. The balance sheet holds a net cash position of HK$302M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.2900 (bear case) to HK$0.4200 (bull case); at HK$0.7700, 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 42% below its 52-week high and 75% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -25% fair-value upside, at -49%, 0797 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
Residual Income HK$0.4900 HK$0.4700 HK$0.3800 76
ROIC Compounder HK$0.2700 HK$0.3000 HK$0.3200 72
Gordon GGM HK$0.6200 HK$1.23 HK$1.87 70
All 17 models by family
DCF Models
Owner Earnings HK$0.3400 HK$0.5000 HK$0.7500 31
Earnings-Based
Graham-Dodd HK$0.1000 HK$0.4500 HK$0.6100 54
Lynch FV HK$0.1100 HK$0.1600 HK$0.2100 50
PEG = 1.0 HK$0.1100 HK$0.1600 HK$0.2100 46
EPV HK$0.2700 HK$0.3000 HK$0.3200 59
Dividend Discount
Gordon GGM HK$0.6200 HK$1.23 HK$1.87 70
DDM Multi-Stage HK$0.6200 HK$1.06 HK$1.30 61
Multiples
P/E Multiple HK$0.2500 HK$0.3300 HK$0.4200 63
P/S Multiple HK$0.1900 HK$0.2600 HK$0.3200 58
P/B Multiple HK$0.1900 HK$0.2600 HK$0.3200 55
EV/EBIT HK$0.5100 HK$0.6400 HK$0.7700 53
EV/EBITDA HK$0.4600 HK$0.5800 HK$0.6900 54
EV/Revenue HK$0.4200 HK$0.5500 HK$0.6700 43
Asset-Based
NCAV (Graham) HK$0.3500 HK$0.4700 HK$0.7000 50
Economic Profit
Residual Income HK$0.4900 HK$0.4700 HK$0.3800 76
ROIC Compounder HK$0.2700 HK$0.3000 HK$0.3200 72
Growth Earnings
Growth-Adj P/E HK$0.2000 HK$0.2800 HK$0.3600 68

Widest divergence: Dividend Discount (HK$1.06) versus Earnings-Based (HK$0.1600). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$521M
Revenue growth (YoY) +107%
Net margin 7.1%
Return on equity 2.1%
Free cash flow −HK$210M FY2025
P/E ratio 58.0 as of Jul 2, 2026
More key figures
Operating margin 27.4%
EPS (TTM) HK$0.0100
EPS growth (YoY) -45.7%
Net cash HK$302M FY2025

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

Quality Score breakdown

Overall quality 65/100

Of which business quality 59 · Market factors (momentum, volatility) 59

Profitability 27
Margins and returns on capital today
Quality Growth 93
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 75
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 82
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

7Road Holdings Limited, an investment holding company, develops and distributes of web and mobile games in the People's Republic of China and internationally. The company offers web and mobile games, including DDTank, Wartune, Mythic Glory, Island Story, DRAGON OATH, and DDTank Adventure series.

Full company description

7Road Holdings Limited, an investment holding company, develops and distributes of web and mobile games in the People's Republic of China and internationally. The company offers web and mobile games, including DDTank, Wartune, Mythic Glory, Island Story, DRAGON OATH, and DDTank Adventure series. It is also involved in publishing online games; online game development, promotion and management; and cloud computing and other related services, such as elastic computing, storage, graphics processing unit computing, and security. 7Road Holdings Limited was incorporated in 2008 and is headquartered in Wuxi, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

7Road Holdings reported revenue of HK$521M in FY2025 versus HK$421M in FY2021, a compound +5.5%/yr. Reported net income was HK$37.0M in FY2025, compounding −20.8%/yr from FY2021.

Growth Quality 35/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$521M
Latest YoY
+70.1%
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.
−1.2%
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.
+4.2%
Avg. growth/yr (10Y) ⓘ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.
+3.3%
Revenue +5.5%/yr
FY21 HK$421M
FY22 HK$541M
FY23 HK$628M
FY24 HK$306M
FY25 HK$521M
Net income −20.8%/yr
FY21 HK$94.2M
FY22 HK$282M
FY23 −HK$146M
FY24 −HK$73.5M
FY25 HK$37.0M

0797 screens 49% overvalued. Compare with NetEase, Inc →

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7Road Holdings · Fair Value
HK$0.3900 −49%Fair Value
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Cite: Fair Value Calculator (2026). "7Road Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0797

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 65 · Above median
Fair Value upside −49% · Below median
Return on equity (TTM) 2% · Below median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 27% · Top 25%
Revenue growth 107% · Top 25%
Dividend yield (TTM) 6.1% · Above median

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

P/E (TTM) 58.0× · Pricier than 75% of peers
P/B 1.66× · Pricier than median
P/S (TTM) 5.45× · Pricier than 75% of peers
EV/EBITDA 18.8× · 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 0 · sector 21
FUTURE 100 · sector 7
PAST 8 · sector 9
HEALTH 100 · sector 99
DIVIDEND 100 · sector 54

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

Stock Price Fair Value vs Fair Value
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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 7Road Holdings (0797) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.3900 versus a price of HK$0.7700, about −49% (overvalued).
What is the fair value of 0797?
Our model-based fair value for 7Road Holdings is HK$0.3900 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.7700.
What is the quality score of 0797?
7Road Holdings has a Quality Score of 65/100. 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 7Road Holdings (0797)?
7Road Holdings reported trailing-twelve-month revenue of about HK$521M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0797?
The net profit margin of 7Road Holdings is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. 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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