Stock fact sheet · data as of
The9 Limited (NCTY): fair value, margin of safety and Wheel Score
Ticker symbol NCTY · Financial Services · Financial - Capital Markets · China · ADR · Value
NCTY is an American depositary share (ADR): the US listing of The9 Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is NCTY undervalued?
The9 Limited (NCTY) closed at 2.54 on 5 Nov 2026. The GLS average fair value - the simple average of the 5 valuation models that produced a positive number - is 13.54, which puts the price 81% below it. 5 of the 5 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 5 models disagree widely: Graham Number gives 5.99 while Graham Growth gives 32.99. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, NCTY is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 92, growth score 29, out of 100).
Nine valuation models for NCTY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 5.99 | +136% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 32.99 | +1201% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 14.26 | +462% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.61 | +200% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.83 | +170% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.0865 | -103% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: NCTY passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 2.0 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -80.7%, ROE -152.6%, ROA -67.7% - with debt at 0.89 times equity and negative free cash flow.
The9 Limited pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Cryptocurrency Mining Revenue 100% (fiscal year FY2025).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | -80.7% |
|---|---|---|---|
| GLS Moat | 2.0 / 10 | ROE | -152.6% |
| Debt / equity | 0.89 | ROA | -67.7% |
| Free-cash-flow yield | -23.9% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 25: No options
NCTY has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (25 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 31k shares a day on a market cap of $39M, with a beta of 2.03 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $39M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 2.54 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 81% below fair value | |
| Premium | Weak | no option data | |
| Moat | Weak | moat 2.0/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Weak | beta 2.03, $39M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for NCTY in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Capital Markets
The 12 companies below are the closest to The9 Limited by market cap within the Financial - Capital Markets industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DOMH Dominari Holdings Inc. | 1.64 | 11.43 | +86% | 24Weak | $40M |
| HGBL Heritage Global Inc. | 1.28 | 8.84 | +86% | 34No options | $44M |
| COHN Cohen & Company Inc. | 10.23 | 141.88 | +93% | 29No options | $33M |
| CANG Cango Inc. | 1.22 | - | - | 10Weak | $48M |
| MATH Metalpha Technology Holding Limited | 1.04 | 6.44 | +84% | 28No options | $49M |
| GRAN Grande Group Limited Class A Ordinary Shares | 1.20 | 0.0368 | -3159% | 14No options | $30M |
| FLD Fold Holdings, Inc. | 0.5386 | 0.1056 | -410% | 11Weak | $30M |
| BTCS BTCS Inc. | 1.04 | 0.7425 | -40% | 9Weak | $55M |
| SRL Scully Royalty Ltd. | 4.23 | 5.05 | +16% | 19Weak | $64M |
| ATCH AtlasClear Holdings, Inc. | 0.1403 | 0.1047 | -34% | 19No options | $21M |
| CFOR CapForce Inc. | 6.90 | 102.05 | +93% | 27No options | $73M |
| SIEB Siebert Financial Corp. | 1.83 | 8.79 | +79% | 31Weak | $75M |
⚖ Compare NCTY with 7 of them All Financial Services stocks →
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NCTY
Is NCTY undervalued right now?
By the GLS models, yes: at 2.54 the stock is 81% below the average fair value of 13.54 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NCTY and what does it mean?
NCTY has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for NCTY?
13.54 per share as of 5 Nov 2026 - the simple average of the 5 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The9 Limited report earnings next?
No upcoming earnings date is recorded for NCTY in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does NCTY have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on NCTY, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.
Is NCTY an ADR?
Yes. NCTY is an American depositary share (ADR): the US listing of The9 Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.