Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Digital Hollywood Interactive Limited, an investment holding company, publishes online games for China-based game developers in North America, Europe, the People's Republic of China, and internationally. The company develops, operates, and publishes various games comprising casual games, and mid-and hardcore games in web and mobile formats to various demographic user communities; and provides game redesign, optimization, marketing, distribution, monetization, payment support, and other user-related services. It also offers marketing and technical support services. The company was founded in 2010 and is headquartered in Guangzhou, China.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA.
