HUYA's Current Market Valuation Makes No Sense, Buy

May 23, 2022 7:35 AM ETHUYA Inc. (HUYA)BILI, DOYU18 Comments
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Cavenagh Research


  • HUYA is one of the leading live streaming platforms in China. As the No.1 streaming platform for gaming, HUYA regularly hosts e-Sports event organizers and collaborates with major game developers.
  • HUYA stock is down 41% YTD and 90% from February 2021 levels. The company is now trading at -$650 million enterprise value.
  • I analyse HUYA’s fundamentals and structure a residual earnings framework to value the company - based on analyst EPS consensus, no TV growth and 10% WACC.
  • Based on my calculation, I give HUYA a Buy/high risk recommendation and a base-case target price of $5.31/share.

Top down view of colorful illuminated gaming accessories laying on table.

gleitfrosch/iStock via Getty Images


How low can a stock go? How cheap can a valuation be? HUYA (NYSE:HUYA) stock is down 41% YTD and 90% from February 2021 levels. The company is now trading at negative $650 million enterprise value. Looking at such

HUYA valuation residual earnings

Analyst Forecast, Author's Calculation

Huya valuation sensitivity table

Analyst Forecast, Author's Calculation

This article was written by

Cavenagh Research profile picture
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have a beneficial long position in the shares of HUYA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advice.

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