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SOHU:NASDAQSohu.com Limited Analysis

Data as of 2026-05-02 - not real-time

$15.70

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Valuation looks extremely cheap – the trailing P/E is just 1.1 while the industry average sits near 19, and the price‑to‑book is only 0.32 against a book value of $49 per share. Balance sheet strength is evident from $830 M of cash versus $36 M of debt, giving a solid cushion despite negative operating cash flow.
Technically, the stock trades around its 20‑day SMA (15.35) and just below the 50‑day SMA (15.80), with a neutral trend, RSI at 53 and a bullish MACD histogram (+0.055). Support sits at $14.54 and resistance at $16.12, leaving upside potential of roughly 33% to the target median price of $21. Recent news highlights the profitable Changyou gaming segment and a strong cash position, but notes weakness in the media arm.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price near short‑term support with limited upside in the next weeks
  • Neutral technical trend and modest volume decline
  • High cash reserves mitigate near‑term downside

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Significant valuation gap (P/E ~1 vs industry ~19)
  • Profitability in Changyou gaming segment driving earnings
  • Strong balance sheet with ample liquidity

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Undervalued relative to book and earnings multiples
  • Potential for turnaround in media segment as digital ad spend recovers in China
  • Low beta (0.7) suggests limited market‑wide volatility exposure

Key Metrics & Analysis

Financial Health

Revenue Growth5.60%
Profit Margin67.44%
P/E Ratio1.1
ROE35.81%
ROA-2.11%
Debt/Equity2.84
P/B Ratio0.3
Op. Cash Flow$-4762000
Free Cash Flow$-6944250
Industry P/E18.9

Technical Analysis

TrendNeutral
RSI52.8
Support$14.54
Resistance$16.12
MA 20$15.35
MA 50$15.80
MA 200$15.60
MACDBullish
VolumeDecreasing
Fear & Greed Index91.09

Valuation

Target Price$21.00
Upside/Downside33.76%
GradeUndervalued
TypeValue

Risk Assessment

Beta0.71
Volatility32.70%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.