YY Inc. operates an online social platform in China. It engages users in real-time online group activities through voice, video, and text on personal computers and mobile devices. The company was founded in 2005 and is based in Guangzhou, China.
YY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for JOYY Inc. To summarize, we found that JOYY Inc ranked in the 46th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 6.5%. The most interesting components of our discounted cash flow analysis for JOYY Inc ended up being:
As a business, YY is generating more cash flow than 91.27% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 4.9% of the free cash flow producing stocks we're observing.
YY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 60.89% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AMOT, IPHI, JBL, MTCH, and KLAC can be thought of as valuation peers to YY, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.