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Three's Company (605168) Fair Value & Analysis

Communication Services · CN · Market cap 9.8B CNY

TS Three's Company 605168 · SHG
Price¥40.35
Fair Value¥13.02
Upside-67.7%
Quality56/100
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Healthy Growth
Thin margins · 3.3% net margin
Low debt · generates free cash flow
1.60% dividend yield
Mixed vs. peers (8/14)
Narrow moat 35/100
Evidence: High Range ¥9.77 – ¥16.28 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Share price −11.3% over the past month.

A solid business, but screening 68% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥16.28). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥115.09 ¥22.59 Fair Value ¥13.02 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥22.59 – ¥115.09 · fair‑value band ¥9.77 – ¥16.28 · the ¥40.35 price screens above the ¥13.02 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Three's Company (605168) currently trades at ¥40.35, while our model-based Fair Value estimate is ¥13.02, implying the stock looks roughly 67.7% overvalued today. The Quality Score stands at 56/100 (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, Three's Company generated revenue of 3.9B CNY at a net margin of 3.3%. Revenue grew 30.0% year over year. It earns a return on equity of 4.6%. Net debt stands at 81.8M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥9.77 (bear case) to ¥16.28 (bull case); at ¥40.35, 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 37% below its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -1% fair-value upside, at -68%, 605168 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥39.49 ¥68.03 ¥123.87 80
Residual Income ¥10.42 ¥10.98 ¥11.54 76
Rev-Margin DCF ¥23.04 ¥36.37 ¥62.39 74
All 26 models by family
DCF Models
FCF DCF ¥41.81 ¥62.36 ¥126.46 38
Owner Earnings ¥16.42 ¥31.87 ¥63.12 31
5Y Revenue Exit ¥22.35 ¥32.21 ¥52.51 39
5Y EBITDA Exit ¥22.67 ¥32.85 ¥52.64 41
5Y P/E Exit ¥25.58 ¥46.78 ¥74.69 38
10Y Revenue Exit ¥28.08 ¥48.41 ¥58.63 36
10Y EBITDA Exit ¥28.73 ¥49.08 ¥81.28 37
10Y P/E Exit ¥30.80 ¥55.19 ¥93.01 35
Earnings-Based
Graham-Dodd ¥6.13 ¥42.73 ¥59.96 54
Lynch FV ¥17.92 ¥25.60 ¥33.27 50
PEG = 1.0 ¥17.92 ¥25.60 ¥33.27 46
EPV ¥12.52 ¥13.91 ¥15.11 59
Dividend Discount
Gordon GGM ¥7.04 ¥14.03 ¥21.25 70
DDM Multi-Stage ¥7.04 ¥12.13 ¥14.81 61
Multiples
P/E Multiple ¥14.87 ¥19.82 ¥24.78 63
P/S Multiple ¥11.49 ¥15.32 ¥19.15 58
P/B Multiple ¥11.49 ¥15.32 ¥19.15 55
EV/EBIT ¥16.63 ¥20.94 ¥25.25 53
EV/EBITDA ¥14.64 ¥18.29 ¥21.93 54
EV/Revenue ¥13.51 ¥17.71 ¥21.91 43
Asset-Based
NCAV (Graham) ¥6.46 ¥8.66 ¥12.92 50
Growth DCF
Growth DCF ¥39.49 ¥68.03 ¥123.87 80
Rev-Margin DCF ¥23.04 ¥36.37 ¥62.39 74
Economic Profit
Residual Income ¥10.42 ¥10.98 ¥11.54 76
ROIC Compounder ¥12.52 ¥15.33 ¥18.47 72
Growth Earnings
Growth-Adj P/E ¥22.68 ¥32.40 ¥42.12 68

Widest divergence: DCF Models (¥46.78) versus Asset-Based (¥8.66). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.9B CNY
Revenue growth (YoY) +30.0%
Net margin 3.3%
Return on equity 4.6%
Free cash flow 505M CNY FY2025
P/E ratio 77.1
More key figures
Operating margin 5.7%
EPS (TTM) ¥0.6000
Dividend yield 1.6%
EPS growth (YoY) -85.7%
Net debt 81.8M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 58 · Market factors (momentum, volatility) 49

Profitability 39
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 79
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 19
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

Three's Company Future Technology Group Co., Ltd. operates as an integrated marketing services company in China. The company's services include full-process planning, creative, execution, and communication services in areas such as full-case digital marketing and scenario marketing.

Full company description

Three's Company Future Technology Group Co., Ltd. operates as an integrated marketing services company in China. The company's services include full-process planning, creative, execution, and communication services in areas such as full-case digital marketing and scenario marketing. It operates through four business divisions including marketing, industrial investment, architectural technology, and smart technology. Its marketing services include strategy and creativity, public relations activities, conference services, exhibition, traditional media, creative design, integrated marketing planning, effectiveness evaluation, insight analysis, insight analysis, public opinion marketing, roadshow, sports competition, culture and entertainment, local promotion show, press conferences, forums and summits, exchange and training sessions, recruitment presentations standard booths, custom-built booths, exhibition equipment, television media, major transportation media, urban transportation media, urban landmark media, commercial district media, community media, building media, and campus media. Additionally, it operates as a construction industry company specializing in integrating construction, construction supply chain, decoration and renovation, municipal engineering construction, integrated temporary construction, corporate identity and safety protection product production and installation, and construction support services. It also offers sports lottery services and also develops an AI-powered smart sports event information platform. The company was formerly known as Three's Company Media Group Co., Ltd. and changed its name to Three's Company Future Technology Group Co., Ltd. in April 2026. The company was incorporated in 2003 and is based in Xi'an, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Three's Company reported revenue of ¥3.7B in FY2025 versus ¥3.6B in FY2021, a compound +0.6%/yr. Reported net income was ¥190M in FY2025, compounding −21.7%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
3.7B CNY
Avg. growth/yr (3Y)
+5.6%
Avg. growth/yr (5Y)
+20.9%
Avg. growth/yr (12Y)
+40.8%
Revenue +0.6%/yr
FY21 ¥3.6B
FY22 ¥5.7B
FY23 ¥5.3B
FY24 ¥4.2B
FY25 ¥3.7B
Net income −21.7%/yr
FY21 ¥505M
FY22 ¥737M
FY23 ¥528M
FY24 ¥123M
FY25 ¥190M

605168 screens 68% overvalued. Compare with AppLovin Corporation →

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Cite: Fair Value Calculator (2026). "Three's Company Fair Value". https://www.fairvalue-calculator.com/stock/605168

Peer Group

Advertising Agencies · 199 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 56 · Above median
Fair Value upside −68% · Bottom 25%
Return on equity (TTM) 5% · Above median
Return on assets 4% · Above median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 6% · Above median
Revenue growth 30% · Top 25%
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Advertising Agencies median · lower = cheaper

P/E (TTM) 77.1× · Pricier than 75% of peers
P/B 3.58× · Pricier than 75% of peers
P/S (TTM) 2.49× · Pricier than 75% of peers
P/FCF 2.9× · Cheaper than median
EV/EBITDA 31.1× · 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 19
FUTURE 100 · sector 8
PAST 19 · sector 7
HEALTH 99 · sector 98
DIVIDEND 32 · sector 66

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 Advertising Agencies stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
AppLovin Corporation APP $506.98 $181.37 -64%
Publicis Groupe S.A PUB €87.16 €146.36 +68%
Omnicom Group OMC $80.75 $99.84 +24%
Focus Media Information Technology Co 002027 ¥5.00 ¥4.08 -18%
The Trade Desk, Inc TTD $19.37 $20.76 +7%
BlueFocus Intelligent Communications Group 300058 ¥13.81 ¥1.50 -89%
JCDecaux SE DEC €21.28 €20.99 -1%
WPP plc WPP $18.13 $18.56 +2%
Easy Click Worldwide Network Technology Co 301171 ¥28.85 ¥5.62 -81%
Mobvista Inc 1860 HK$11.15 HK$6.43 -42%

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Frequently asked questions

Is Three's Company (605168) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥13.02 versus a price of ¥40.35, about −68% (overvalued).
What is the fair value of 605168?
Our model-based fair value for Three's Company is ¥13.02 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥40.35.
What is the quality score of 605168?
Three's Company has a Quality Score of 56/100. 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 Three's Company (605168)?
Three's Company reported trailing-twelve-month revenue of about 3.9B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605168?
The net profit margin of Three's Company is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.
Does Three's Company pay a dividend?
Three's Company currently shows a dividend yield of about 1.60% relative to its recent price (as of Jul 12, 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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