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Nine Entertainment Co. Holdings Ltd (NEC) Fair Value & Analysis

Communication Services · AU · Market cap A$1.5B (≈ $1.1B) · ISIN AU000000NEC4

NE Nine Entertainment Co. Holdings Ltd NEC · AU
PriceA$0.9700
Fair ValueA$2.87
Upside+195.9%
Quality67/100
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Strengths

Trades 66% below our fair value of A$2.87
Highly profitable · 34.9% net margin
Low debt · generates free cash flow
Ranks above peers (9/11)

Risks

!Mixed Growth (revenue 5y +4.6 %/yr)
!Moderate moat 58/100
!Evidence only low, so the estimate is less certain
Mixed Growth (revenue 5y +4.6 %/yr)
Highly profitable · 34.9% net margin
Low debt · generates free cash flow
9.19% dividend yield
Ranks above peers (9/11)
Moderate moat 58/100
Evidence: Low Range A$1.84 – A$3.91 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 17 days ago

Fair value updated Aug 13, 2026, revised from A$1.44 to A$2.87 (+99.3%) since Jul 16, 2026. Share price −2.0% over the past month.

A solid business, trading 66% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (A$1.84). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (A$1.84 to A$3.91) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

A$1.67 A$0.7042 Fair Value A$2.87 Jun 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 A$0.7042 – A$1.67 · fair‑value band A$1.84 – A$3.91 · the A$0.9700 price screens below the A$2.87 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Nine Entertainment Co. Holdings Ltd (NEC) currently trades at A$0.9700, while our model-based Fair Value estimate is A$2.87, implying the stock looks roughly 195.9% undervalued today. The Quality Score stands at 67/100 (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: low), always confirm before acting.

Over the trailing twelve months, Nine Entertainment Co. Holdings Ltd generated revenue of A$2.6B at a net margin of 34.9%. Revenue declined 4.4% year over year. It earns a return on equity of 9.1%. Net debt stands at A$917M. Fundamentals as of Aug 13, 2026

Our scenario range runs from A$1.84 (bear case) to A$3.91 (bull case); at A$0.9700, the current price sits below 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 22% 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 -51% fair-value upside, at 196%, NEC 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
FCF DCF A$2.74 A$4.14 A$8.33 74
EPV A$1.57 A$1.83 A$2.04 74
Residual Income A$0.7500 A$0.7600 A$0.7400 74
All 24 models by family
DCF Models
FCF DCF A$2.74 A$4.14 A$8.33 74
Owner Earnings A$1.60 A$3.65 A$7.44 69
5Y Revenue Exit A$2.46 A$4.45 A$8.62 66
5Y EBITDA Exit A$2.94 A$5.43 A$10.30 69
5Y P/E Exit A$1.42 A$2.94 A$4.91 66
10Y Revenue Exit A$2.48 A$5.66 A$7.66 64
10Y EBITDA Exit A$2.89 A$6.61 A$13.04 62
10Y P/E Exit A$1.88 A$3.62 A$6.26 59
Earnings-Based
Graham-Dodd A$0.4500 A$3.11 A$4.36 61
Lynch FV A$1.61 A$2.29 A$2.98 59
PEG = 1.0 A$1.61 A$2.29 A$2.98 55
EPV A$1.57 A$1.83 A$2.04 74
Multiples
P/E Multiple A$1.08 A$1.44 A$1.80 63
P/S Multiple A$0.8400 A$1.11 A$1.39 58
P/B Multiple A$0.8400 A$1.11 A$1.39 55
EV/EBIT A$2.88 A$3.94 A$5.00 66
EV/EBITDA A$2.98 A$4.08 A$5.17 67
EV/Revenue A$2.11 A$3.15 A$4.18 53
Asset-Based
NCAV (Graham) A$0.5000 A$0.6600 A$0.9900 54
Growth DCF
Growth DCF A$2.55 A$4.63 A$7.89 73
Rev-Margin DCF A$2.75 A$5.14 A$10.14 66
Economic Profit
Residual Income A$0.7500 A$0.7600 A$0.7400 74
ROIC Compounder A$2.04 A$3.01 A$3.61 70
Growth Earnings
Growth-Adj P/E A$2.13 A$3.04 A$3.96 65

Widest divergence: Growth DCF (A$4.63) versus Asset-Based (A$0.6600). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/E ratio 13.9
P/S ratio 0.53 P/E × margin
EPS (TTM) A$0.0700 price ÷ EPS = P/E 13.9
Dividend yield 9.2% payout 127%
Net margin 3.9% FY2025
Return on equity 9.1% TTM
More key figures
Profitability
Return on assets (EBIT) 10.2% avg 5y
Operating margin 13.7% TTM
Growth
Revenue (TTM) A$2.6B TTM
Revenue growth (YoY) -4.4% 3y avg +0.1%
EPS growth (YoY) +10.3%
Balance sheet & cash flow
Free cash flow A$355M FY2025
Net debt A$917M FY2025 · ≈ 2.6 yrs of FCF

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

Quality Score breakdown

Overall quality 67/100

Of which business quality 63 · Market factors (momentum, volatility) 41

Profitability 32
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 78
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 99
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. The company operates through Broadcasting, Publishing, Domain Group, and Stan segments.

Full company description

Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. The company operates through Broadcasting, Publishing, Domain Group, and Stan segments. It offers television services under the brands, including 9Network, Channel 9, 9Gem, 9Go!, 9Life, and 9Rush; video on demand platform under 9Now brand; radio stations under 2GB, 3AW, 4BC, and 6PR brands; and publishes newspapers, news-inserted magazines, digital, and events, as well as nine.com.au, a site of news, lifestyle, sport, and entertainment content. The company also provides mastheads under The Sydney Morning Herald, The Age, Brisbane Times, The Australian Financial Review and magzine, WA Today, Fin Magzine, Good Food, Good Weekend, Sunday Life, Traveller, Leisure and Life, AFR weekend, The Guide/Green Guide, Wide World Of Sports,9Honey, 9Travel, 9Travel Reviews, Domain Group, Drive, Fututre Women, The Sun-Herald, The Sunday Age, Drive, and Pedestrian group brands. In addition, it offers real estate media and technology services. Nine Entertainment Co. Holdings Limited was founded in 1956 and is headquartered in North Sydney, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nine Entertainment Co. Holdings Ltd reported revenue of A$2.7B in FY2025 versus A$2.3B in FY2021, a compound +3.7%/yr. Reported net income was A$104M in FY2025, compounding −11.5%/yr from FY2021.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$2.7B
Latest YoY
+2.8%
Avg. revenue 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.
+0.1%
Avg. revenue 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.
+4.6%
Avg. revenue growth/yr (18Y) 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.
+56.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+13.6% (4.4 + 9.2)
Revenue +3.7%/yr
FY21 A$2.3B
FY22 A$2.7B
FY23 A$2.7B
FY24 A$2.6B
FY25 A$2.7B
Net income −11.5%/yr
FY21 A$169M
FY22 A$297M
FY23 A$182M
FY24 A$111M
FY25 A$104M
Character of growth · EPS growth decomposed (2014-2025) −10.4 % p.a.
Revenue per share +0.2 %

of which total revenue +7.3 % · buybacks/dilution −6.6 %

EBIT margin +13.6 %
Tax rate −2.7 %
Residual (interest, one-offs) −19.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Nine Entertainment Co. Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/NEC

Peer Group

Entertainment · 269 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 67 · Top 25%
Fair Value upside +196% · Top 25%
Return on equity (TTM) 9% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 35% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 9.2% · Top 25%
Debt / equity 0.40× · Higher than 75% of peers

Valuation Multiples vs Entertainment median · lower = cheaper

P/E (TTM) 13.9× · Cheaper than median
P/FCF 3.1× · Cheaper than median

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 12
FUTURE0 · sector 8
PAST37 · sector 0
HEALTH80 · sector 98
DIVIDEND100 · sector 43

Insider activity: 40/100

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

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc NFLX $81.72 $49.35 -40%
The Walt Disney Company DIS $103.50 $80.62 -22%
Warner Bros. Discovery, Inc WBD $27.65 $9.03 -67%
Live Nation Entertainment, Inc LYV $182.02 $59.97 -67%
Universal Music Group UMG €14.73 €14.78 +0%
TKO Group TKO $195.14 $47.75 -76%
Formula One Group FWONK $102.02 $35.21 -65%
Fox Corporation FOXA $68.42 $206.81 +202%
News Corporation NWS A$46.55 A$20.41 -56%
Warner Music Group WMG $24.79 $12.10 -51%

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Frequently asked questions

Is Nine Entertainment Co. Holdings Ltd (NEC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of A$2.87 versus a price of A$0.9700, about +196% (undervalued).
What is the fair value of NEC?
Our model-based fair value for Nine Entertainment Co. Holdings Ltd is A$2.87 (as of Aug 13, 2026), built from audited fundamentals. The current price: A$0.9700.
What is the quality score of NEC?
Nine Entertainment Co. Holdings Ltd has a Quality Score of 67/100. 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 Nine Entertainment Co. Holdings Ltd (NEC)?
Nine Entertainment Co. Holdings Ltd reported trailing-twelve-month revenue of about A$2.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of NEC?
The net profit margin of Nine Entertainment Co. Holdings Ltd is about 34.9%, meaning it keeps roughly 34.9% of revenue as net income. Based on the latest reported figures.
Does Nine Entertainment Co. Holdings Ltd pay a dividend?
Nine Entertainment Co. Holdings Ltd currently shows a dividend yield of about 9.19% 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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