One-glance verdict
Undervalued
$84.96 our estimate vs market $3.92
Wall Street consensus: $4.81 (-94.3% lower than our fair-value estimate)
95% below our estimate, below the bear case
Fundamentals snapshot
DouYu International Holdings Limited
DOYU · NMS · Communication Services · Internet Content & Information
Current price
$3.92
52-week range
$3.42 - $7.23
Market cap
$118.15M
Balance sheet
Healthy
0.17x Concerning
Net cash $343.17M. 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 Limited runs a popular Chinese live-streaming platform focused on video games and entertainment. The company makes money mainly from advertising and virtual gifts viewers buy for streamers, which are like tips. This business model matters because it shows how DouYu connects gamers and viewers with advertisers and content creators.
How the company got here
DouYu International Holdings Limited was founded in 2014 and quickly became a major player in China's live-streaming industry, particularly focusing on video games and esports. [6, 11] The company's growth was fueled by the booming popularity of esports and online gaming in China. [3, 11] DouYu's platform connects gamers, viewers, advertisers, and game developers, creating an ecosystem around live-streamed content. [1, 4] A key turning point was its initial public offering (IPO) on the Nasdaq in July 2019, which was one of the largest IPOs by a Chinese company at the time, raising significant capital to fuel further expansion. [11] The company has since focused on diversifying its revenue streams beyond its core live-streaming business. [11]
What it actually does
DouYu operates a live-streaming platform accessible via PC and mobile apps in China. [1, 4] It's primarily known for broadcasting video game competitions and entertainment content, allowing viewers to interact with streamers and each other in real-time. [3, 6] The platform serves as a hub connecting game developers, professional esports players, tournament organizers, advertisers, and a large audience of viewers. [1, 6] DouYu also produces and shares video clips of past streams, along with graphics that include game guides and news. [6]
Live Streaming
This is DouYu's main business, where it broadcasts live video game content and other entertainment. [2, 8] Viewers can watch professional esports tournaments, gameplay from popular streamers, and various other live shows. [3, 6] The primary way DouYu makes money from this segment is by selling virtual gifts that viewers can purchase and send to their favorite streamers as a form of appreciation or support. [2] This live streaming segment has historically been the largest contributor to DouYu's total revenue, making up a significant majority of its income. [2, 8]
Advertising and Other Services
This segment includes revenue generated from advertisements shown on the platform and other innovative business ventures. [10, 11] DouYu works with advertisers to display promotional content to its large user base. [6] Additionally, the company has been expanding into "innovative businesses" which include services like voice-based social networking and game-related services, aiming to diversify its income sources beyond just live-streaming. [10, 11] This segment has been growing in importance as DouYu seeks to reduce its reliance on virtual gift sales. [11]
What management is betting on now
DouYu's management is focused on diversifying its revenue streams to become less dependent on its traditional live-streaming business, which primarily relies on virtual gift sales. [11] They are investing in and expanding their advertising and "innovative businesses," such as voice-based social networking and other game-related services. [10, 11] This strategy aims to create new avenues for growth and monetization, ensuring the company's long-term health and stability by broadening its income sources. [11]
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 $84.96 vs current price $3.92
Wall Street consensus is the average analyst price target: $4.81 (-94.3% lower than our fair-value estimate).
Our most-likely fair value is $84.96 a share — about 2,070.1% above today's price of $3.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $343.2M - more cash than debt. Interest coverage 0.2x.
Net debt
$-343.17M
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 $2.39M Interest coverage 0.17x This is the baseline the peer rows are being compared against.
Total debt $3.44M Interest coverage -0.85x -100% vs DOYU This peer has almost no interest-payment cushion compared with DOYU.
Total debt $1.43B 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 $1.91B 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
11.62x
P/B
0.42x
P/S
0.03x
EV/EBITDA
-64.53x
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
$2.39M
Total cash
$345.56M
Growth
How the business has been compounding
Revenue TTM
$2.94B
Revenue 5Y CAGR
-21.5%
EPS TTM
-0.15
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
0.0%
Payout ratio
0.0%
Last ex-div date
2025-02-21