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NCTYThe9 Limited
$5.04$24M
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  4. Financial Ratios

The9 Limited (NCTY) Financial Ratios

Latest Ratios: P/E Ratio -0.7x · EV/EBITDA N/A · ROE -120.1%. (2001–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

NCTY Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$24M$48M$68M$37M$14M$111M$19M$32M$21M$21M$30M
Enterprise Value$50M$225M$194M$67M$30M$-218081316$14M$627M$505M$248M$331M
P/E Ratio →-0.67——1.25——0.05————
P/S Ratio1.480.450.600.210.130.8230.8694.771.180.300.51
P/B Ratio1.070.200.160.200.500.14—————
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

NCTY EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.081.710.380.28-1.6323.121840.0827.873.485.63
EV / EBITDA——————0.04————
EV / EBIT———————————
EV / FCF———————————

NCTY Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin1.7%1.7%-1.4%-22.5%-45.2%35.2%-30.2%-835.5%5.7%67.5%13.7%
Operating Margin-229.6%-229.6%-143.7%-137.7%-630.5%-198.2%53831.3%-38089.6%-662.4%-155.4%-392.6%
Net Profit Margin-373.0%-373.0%-65.7%-79.8%-929.1%-302.7%63611.7%-55820.6%-1480.1%-239.6%-1204.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-120.1%-120.1%-24.5%-132.9%-246.5%-845.5%—————
ROA-65.4%-65.4%-14.9%-28.8%-102.1%-59.7%346.1%-109.8%-109.9%-50.7%-159.2%
ROIC-38.2%-38.2%-31.9%-141.0%-207.4%——————
ROCE-72.7%-72.7%-51.5%-203.2%-165.2%-118.1%—————

NCTY Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.970.970.320.412.690.13—————
Debt / EBITDA——————0.08————
Net Debt / Equity—0.730.290.160.59-0.43—————
Net Debt / EBITDA——————-0.01————
Debt / FCF———————————
Interest Coverage-16.55-16.55-4.76-7.64-19.75-2.23-27.52-3.76-1.15-1.32-4.09

NCTY Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.001.001.191.370.701.930.120.150.040.220.15
Quick Ratio1.001.001.191.370.701.070.110.020.040.190.14
Cash Ratio0.900.900.050.280.100.790.090.010.000.170.07
Asset Turnover—0.180.180.480.180.100.010.000.110.220.17
Inventory Turnover—————0.190.200.02—0.815.59
Days Sales Outstanding—71.4324.810.1218.87179.681.743304.7949.2013.3553.44

NCTY Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———80.1%——2050.8%————
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$8M$5M$5M$2M$2M$545333$354690$207049$111421$79580

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Operational insolvency and liquidity

Speculative Pricing Amidst Value Destruction

According to recent market data, NCTY trades at a P/S ratio of 1.50, which appears disconnected from its negative earnings profile and suggests investors are pricing the firm as a speculative digital asset option rather than a traditional technology company with sustainable cash-generating capabilities.

The lack of a positive P/E or EV/EBITDA multiple reflects the market's difficulty in assigning fundamental value to a business model that consistently destroys capital. Investors should monitor whether this valuation premium persists as the company's core mining and NFT initiatives continue to struggle against industry-wide headwinds.

Structural Margin Deficit Remains Persistent

As reported in financial statements, the company's gross margin has deteriorated to a negative 43.7% in 2024Q4, indicating that the cost of revenue, primarily driven by energy and hardware maintenance, far exceeds the value generated from its digital asset mining and NFT platform operations.

This deeply negative margin profile suggests that the company lacks the operational scale or technological efficiency to compete with specialized mining peers. The inability to achieve positive gross margins implies that the current business model is fundamentally unviable under existing market conditions.

Persistent Decay in Invested Capital

Based on reported figures, NCTY's ROIC has remained consistently negative, reaching -14.9% in 2024Q4, which highlights a long-term trend of value destruction as the company fails to generate returns that exceed the cost of its capital investments in mining infrastructure.

The persistent negative ROIC suggests that management's capital allocation strategy has failed to pivot effectively into profitable ventures. This trend warrants further investigation into whether future capital raises will continue to be deployed into assets that do not contribute to long-term shareholder value creation.

Acute Liquidity Constraints Threaten Operations

As indicated by the company's recent filings, the current ratio has hovered near 1.19, yet with cash reserves plummeting to $10.9 million, the firm faces an acute liquidity risk that leaves it with minimal buffer to absorb further operational losses or market volatility.

The reliance on external financing to maintain operations is evident, as the company lacks the internal cash generation to support its current cost structure. Investors should monitor the company's ability to secure additional funding, as the current liquidity position appears insufficient for long-term operational stability.

Misapplication of Price-to-Sales Multiples

Market participants frequently misapply the Price-to-Sales ratio to NCTY, which obscures the company's inability to convert revenue into gross profit and ignores the high fixed-cost burden inherent in its current digital asset mining and NFT platform business model.

Instead of P/S, analysts should focus on the gross margin and cash burn rate to assess the company's true economic viability. Relying on revenue multiples in this context may lead to an overestimation of the firm's potential, as top-line figures do not reflect the underlying operational insolvency.

Download Financial Ratios Data

Includes 30+ ratios · 25 years · Updated daily

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NCTY — Frequently Asked Questions

Quick answers to the most common questions about buying NCTY stock.

What is The9 Limited's P/E ratio?

The9 Limited's current P/E ratio is -0.7x. The historical average is 5.2x.

What is The9 Limited's ROE?

The9 Limited's return on equity (ROE) is -120.1%. The historical average is -50.4%.

Is NCTY stock overvalued?

Based on historical data, The9 Limited is trading at a P/E of -0.7x. Compare with industry peers and growth rates for a complete picture.

What are The9 Limited's profit margins?

The9 Limited has 1.7% gross margin and -229.6% operating margin.