China Literature Limited (CHLLF) fair value: what the stock is really worth
As of Sep 30, 2026: fair value of China Literature Limited $0.85, price $2.95, upside -71.2%, quality 45 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $0.0001 – $11.00 · fair‑value band $0.6900 – $1.00 · the $2.95 price screens above the $0.8500 fair value. Dashed = 300-day average. As of Sep 24, 2026.
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China Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company operates through Online business, and Intellectual Property Operations and Others segments.
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China Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company operates through Online business, and Intellectual Property Operations and Others segments. It is involved in the business of online text, online advertising, and game publishing, as well as comics and audio books reading via self-owned platforms under the QQ Reading, Qidian, New Classics Media, and Tencent Animation & Comics brands. The company also produces, licenses, and distributes film, television, web, and animated series; copyrights licensing; sales of adaptation rights and scripts; distribution of short-form dramas and AI-animated dramas; sales of physical books and intellectual property merchandise products; in-house online games operations; and distributions of online audio books and online comic content provided via Tencent and third-party platforms. In addition, it provides reading, copyright commercialization, writer cultivation, and brokerage services; and operates text work reading and related open platform through technology methods and digital media, including personal computers, internet, and mobile network. Further, the company engages in sales of adaptation rights and scripts; and online reading business. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China. China Literature Limited operates as a subsidiary of Tencent Holdings Limited.
Stock analysis
China Literature Limited (CHLLF) currently trades at $2.95, while our model-based Fair Value estimate is $0.8500, 71.2% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Asset-Based group reads highest at a median of $1.72 per share, and 0 of the 6 models we run sit above the $2.95 price.
Bear case: the Earnings-Based group reads lowest at $0.4500, and 6 of the 6 models stay below the price. Evidence for this calculation is medium.
Scenario range: $0.6900 (bear) to $1.00 (bull), the price of $2.95 sits above 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 45/100 (below-average quality), in the Communication Services sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
China Literature Limited reported revenue of 7.2B CNY in FY2025 versus 8.7B CNY in FY2021, a compound −4.6%/yr. Reported net income was −756M CNY in FY2025.
Key figures
Market cap $3.0B · P/S ratio 0.41 · EPS (TTM) $−0.1100 · Net margin −10.5% · Return on equity −4.3% · Return on assets (EBIT) 3.0% · Operating margin 5.4% · Revenue (TTM) 7.4B CNY.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 28 out of 100 (medium confidence).
What moves the price
The share trades about 38% below its 52-week high and 16% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 10% fair-value upside, at −71%, CHLLF screens richer than that median.
Fair Value models
Bear $0.6900Fair Value $0.8500Bull $1.00
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. 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.Evidence ⓘEvidence = 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.0/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−11.6%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−2.0%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−3.4%
Start year 2020 (pandemic). Over 10 years: +16.1% a year
Revenue growth 11 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+28.2%
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Profit margin (trend) ⓘ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.
−52.5% (2020) → 3.7% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
Compare China Literature Limited with another stock
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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.Internet Content & Information · 121 stocks
Beats the industry median on 4/9 measures
A mixed picture versus its industry peers.
Valuation
Quality Score45 · Bottom 25%
Fair Value upside−53.3% · Bottom 25%
Profitability
Return on assets1.4% · Below median
Net margin (TTM)−10.5% · Below median
Operating margin (TTM)5.4% · Below median
Growth and dividend
Revenue growth6.2% · Above median
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
P/B0.17× · Cheapest 25%
P/S (TTM)0.41× · Cheapest 25%
EV/EBITDA2.1× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 47
FUTURE (revenue growth)31· sector 31
PAST (return on equity)0· sector 22
HEALTH (low debt)100· sector 98
DIVIDEND (yield)0· sector 40
VALUE 0: the price sits above our fair-value range.
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.
Cite: Fair Value Calculator (2026). "China Literature Limited Fair Value". https://www.fairvalue-calculator.com/stock/CHLLF
Frequently asked questions
Is China Literature Limited (CHLLF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $0.8500 versus a price of $2.95, about −71% upside (overvalued).
What is the fair value of CHLLF?
Our model-based fair value for China Literature Limited is $0.8500 (as of Sep 24, 2026), built from audited fundamentals. The current price: $2.95.
What is the quality score of CHLLF?
China Literature Limited 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 price target for China Literature Limited (CHLLF)?
Our model-based price target is the fair value of $0.8500 (as of Sep 24, 2026) from 6 valuation models. Cautious scenario $0.6900, optimistic scenario $1.00. It is a calculation from audited fundamentals, not an analyst target.
What is the China Literature Limited stock forecast for 2026?
Our models put fair value at $0.8500, about −71% upside versus a price of $2.95 (overvalued). Cautious scenario $0.6900, optimistic scenario $1.00. The calculation is refreshed regularly with new filings.
What is the revenue of China Literature Limited (CHLLF)?
China Literature Limited reported trailing-twelve-month revenue of about 7.4B CNY (latest available figure, as of Sep 24, 2026).
What is the intrinsic value of China Literature Limited (CHLLF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For China Literature Limited it is $0.8500 per share (as of Sep 24, 2026), against a price of $2.95. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is China Literature Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, CHLLF trades above its calculated fair value: price $2.95, fair value $0.8500, a gap of about −71% (overvalued). 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 CHLLF?
No. The price is what the market pays today ($2.95); the fair value is what the company's own numbers justify ($0.8500). For China Literature Limited the two are $2.10 per share apart. That gap is exactly why we show both numbers side by side.
How much is China Literature Limited worth?
The market values China Literature Limited at about $3.0B (market capitalisation, as of Sep 24, 2026). Per share that is $2.95; our models calculate a fair value of $0.8500 per share.
What do the bullish and bearish scenarios say about CHLLF?
Our models span a range for China Literature Limited: cautious scenario $0.6900, base $0.8500, optimistic $1.00 per share (as of Sep 24, 2026, price $2.95). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of China Literature Limited (CHLLF)?
Balance-sheet figures for China Literature Limited (as of Sep 24, 2026): return on equity −4.3%. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is CHLLF from its 52-week high?
China Literature Limited trades at $2.95, about 38% below its 52-week high of $4.78 and 16% above the low of $2.55 (as of Sep 30, 2026). Distance from the high says nothing about value: that is what the fair value of $0.8500 is for.
Which stocks are comparable to China Literature Limited?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, 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 China Literature Limited stock attractive at the current price?
The data as of Sep 24, 2026: price $2.95, calculated fair value $0.8500 (−71%), Quality Score 45/100, from 6 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 CHLLF calculated?
We run China Literature Limited through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $0.8500, 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 14.5 % above its aggregate fair value. China Literature Limited itself currently trades above fair value. 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 China Literature Limited (CHLLF)?
The closing price on Sep 30, 2026 was $2.95. Our model-based fair value is $0.8500, about −71% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with China Literature Limited right now?
The price sits above even our optimistic bull case ($1.00). The favourable scenario is already priced in. Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of China Literature Limited
How large is the market capitalisation of China Literature Limited (CHLLF)?
The market capitalisation of China Literature Limited is $3.0B. 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 China Literature Limited (CHLLF)?
The price-to-sales ratio of China Literature Limited is 0.41 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of China Literature Limited (CHLLF)?
Earnings per share at China Literature Limited are $−0.1100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of China Literature Limited (CHLLF)?
The net margin of China Literature Limited is −10.5% (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 China Literature Limited (CHLLF)?
The return on equity (ROE) of China Literature Limited is −4.3% (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 China Literature Limited (CHLLF)?
On an EBIT basis the return on assets of China Literature Limited is 3.0% (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 China Literature Limited (CHLLF)?
The operating margin of China Literature Limited is 5.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at China Literature Limited (CHLLF)?
Revenue at China Literature Limited is growing +6.2% versus a year earlier (3y avg −2.0%). 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 China Literature Limited (CHLLF)?
Earnings per share at China Literature Limited are growing +69.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does China Literature Limited (CHLLF) generate?
The free cash flow of China Literature Limited is −365M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does China Literature Limited (CHLLF) hold?
China Literature Limited holds more cash than debt, 1.5B CNY net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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