The9 (FRA:FZK0) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:FZK0 The9 Ltd FRA:FZK0
55 GF Score
Price €3.22
GF Value €2.11
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is The9 Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of The9 is: High Risk: High uncertainty with risk-return tradeoff.

The9  (FRA:FZK0) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

The9 Risk Assessment Related Terms

FRA:FZK0 vs BTCS, PLUT, VIP: Risk Assessment Comparison

For the Capital Markets subindustry, The9's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The9 Risk Assessment vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, The9's Risk Assessment distribution charts can be found below:

* The bar in red indicates where The9's Risk Assessment falls into.


FRA:FZK0
55GF Score
The9 Ltd FRA:FZK0
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is The9 (FRA:FZK0) Overvalued in 2026?

Based on GuruFocus' analysis, The9 stock appears to be overvalued. The current stock price of €3.22 is trading 52.6% above its estimated GF Value™ of €2.11. GuruFocus considers The9 to be Significantly Overvalued.

Key valuation signals for FRA:FZK0:

  • Risk Assessment:
  • GF Value™: €2.11 vs. price of €3.22 (52.6% above fair value)
  • GF Score™: 55/100 with 8 warning signs

No single metric tells the full story. See the FRA:FZK0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The9 Business Description

Other Exchanges NCTY:USA
Address No.130 Wu Song Road, 17 Floor, Hong Kou District, Shanghai, CHN, 200080
The9 Ltd operates a cryptocurrency mining business. It provides computing power, or hash rate, to a Bitcoin mining pool and is entitled to receive a fractional share of Bitcoin award from the Bitcoin mining pool in return. The company generates its revenues from customers in Greater China, Asia/Eastern Europe, and North America. Its segments are: Crypto mining business, and Online game services, out of which Crypto mining business derives maximum revenue.
55GF Score

Get the complete analysis for FRA:FZK0

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.22
Price
€2.11
GF Value