Skip to content

The9 Limited American Depository Shares representing three class A ordinary shares (NCTY) — WACC Analysis

WACC Breakdown

The9 Limited American Depository Shares representing three class A ordinary shares (NCTY) has a weighted average cost of capital (WACC) of 10.0%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 13.0%. The capital structure is 74.2% equity and 25.8% debt.

Interpretation

A WACC of 10.0% is moderate, reflecting the market's balanced risk assessment of The9 Limited American Depository Shares representing three class A ordinary shares.

Investors can compare NCTY's WACC of 10.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

NCTY WACC: 9.96% for The9 Limited American Depository Shares representing three class A ordinary shares

Current inputs imply a 8.90% cost of equity and a 13.02% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

The9 Limited American Depository Shares representing three class A ordinary shares Common Stock (NCTY) WACC Results
Weighted Average Cost of Capital
9.96%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
13.02%
Pre-Tax Cost of Debt13.02%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 74.23%($71.78M)
Debt: 25.77%($24.92M)
Equity Component
6.61%
74.23% × 8.90%
Debt Component
3.36%
25.77% × 13.02%

The9 Limited American Depository Shares representing three class A ordinary shares (NCTY) WACC in context

The9 Limited American Depository Shares representing three class A ordinary shares (NCTY) currently screens with an estimated WACC of 9.96%. That blends a 8.90% cost of equity, a 13.02% pre-tax cost of debt, and a 74.23% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What NCTY WACC implies

A 9.96% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NCTY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 74.23% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.