One-glance verdict
Undervalued
$70.51 our estimate vs market $4.61
Wall Street consensus: $4.78 (-93.2% lower than our fair-value estimate)
93% below our estimate, below the bear case
Fundamentals snapshot
DouYu International Holdings Limited
DOYU · NMS · Communication Services · Internet Content & Information
Current price
$4.61
52-week range
$4.18 - $7.66
Market cap
$139.12M
Balance sheet
Healthy
0.17x Concerning
Net cash $341.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -1.7% last year — the company lost money on shareholders' equity.
What this company does
DouYu International Holdings Limited
DouYu International Holdings runs a popular live streaming platform in China, like a Chinese version of Twitch, where people watch others play video games, host talent shows, and share other entertainment content. The company makes money primarily from viewers buying virtual gifts for their favorite streamers and from advertisements shown to its large audience. This matters because DouYu is a central hub for China's massive and growing online gaming and entertainment community.
How the company got here
DouYu, which means "fighting fish" in Chinese, started in 2014 as a spin-off from a video-sharing website called ACFun. It quickly became a popular place for people in China to watch and broadcast live video of themselves playing video games, much like Twitch in the United States. The company grew rapidly, attracting millions of users and eventually listing its shares on the Nasdaq stock exchange in the U.S. in 2019. A key moment in its history was a proposed merger with its main competitor, Huya, which was blocked by regulators in China over concerns it would create a monopoly (a situation where one company has too much control over a market).
What it actually does
DouYu runs a website and mobile app that is a go-to destination for video game lovers in China. Think of it like a massive online arcade and sports bar rolled into one, where you can watch talented gamers play live, learn new strategies, and chat with other fans in real-time. The platform features professional eSports tournaments, popular individual streamers, and a wide variety of other live entertainment like talent shows and travel streams. It's a community where users can interact with each other and their favorite streamers, making the experience more engaging than just watching a video.
Live Streaming
This is the company's original and largest business, though its share of the total is shrinking. Here, the company makes money when viewers buy and send virtual gifts to their favorite streamers during a live broadcast. These gifts are digital items, like a virtual car or flower, that show appreciation. DouYu takes a cut of the money spent on these gifts. While this used to be over 90% of the company's revenue (the total money it brings in), it now accounts for a little more than half as the company diversifies.
Innovative Business, Advertising, and Others
This is a fast-growing collection of newer businesses that now makes up a very significant portion of the company's revenue. A major part of this segment is a voice-based social networking service where users can chat in audio rooms. It also includes game membership services and advertising, where other companies pay DouYu to show ads to its large audience of gamers. This segment is becoming increasingly important, growing from a small slice to nearly half of the company's total revenue.
What management is betting on now
Management is focused on diversifying the company's revenue streams to be less dependent on the traditional live-streaming business. They are actively growing their "Innovative Business" segment, particularly voice-based social features and services for gamers. The company is also working to improve its profitability by carefully managing costs, such as the fees it pays to streamers and for content. The main goal is to find new growth areas that can offset the slowdown in the core virtual gifting market and lead to more stable financial performance in the future.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-32.82M
FY2025 Q4
$-7.51M
Revenue
$546.09M
Net income
—
Diluted EPS
-0.14
Operating cash flow
$-7.47M
Free cash flow
$-7.51M
Fetching…
Sources
Revenue
$585.10M
Net income
—
Diluted EPS
-1.36
Operating cash flow
$-32.72M
Free cash flow
$-32.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $70.51 vs current price $4.61
Wall Street consensus is the average analyst price target: $4.78 (-93.2% lower than our fair-value estimate).
Our most-likely fair value is $70.51 a share — about 1,429.6% above today's price of $4.61, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $341.3M - more cash than debt. Interest coverage 0.2x.
Net debt
$-341.32M
Interest coverage
0.17x
DouYu International Holdings Limited's profit covers its interest bill about 0.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DOYU
BASELINE
DouYu International Holdings Limited
Total debt $2.38M Interest coverage 0.17x This is the baseline the peer rows are being compared against.
Total debt $3.42M Interest coverage -0.85x -100% vs DOYU This peer has almost no interest-payment cushion compared with DOYU.
Total debt $1.42B Interest coverage 7.47x +4,324% vs DOYU Carries about 44.2x more debt cushion than DOYU.
Total debt $69.66M Interest coverage 108.18x +63,981% vs DOYU Carries about 640.8x more debt cushion than DOYU.
Total debt $4.13B Interest coverage 59.07x +34,890% vs DOYU Carries about 349.9x more debt cushion than DOYU.
Total debt $1.84B Interest coverage -30.79x -100% vs DOYU This peer has almost no interest-payment cushion compared with DOYU.
What you should know
The case for and against DOYU
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -1.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
13.76x
P/B
0.49x
P/S
0.04x
EV/EBITDA
-63.85x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
14.4%
Operating margin
-2.2%
Net margin
-0.9%
ROE
-1.7%
ROA
0.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.19x
Quick ratio
2.01x
Total debt
$2.38M
Total cash
$343.70M
Growth
How the business has been compounding
Revenue TTM
$2.94B
Revenue 5Y CAGR
-21.5%
EPS TTM
-0.16
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-56.75M
Free CF TTM
$-7.51M
FCF margin
-0.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2025-02-21