Where Does YY Inc. Stand when Compared to Its Peers?



YY Inc. and its peers

In this article, we’ll compare YY Inc. (YY) to its industry peers. The PE (price-to-earnings) ratios of YY, SINA (SINA), and NetEase (NTES) are 19.4x, 18.1x, and 27.1x, respectively, as of November 23, 2015.

The PBV (price-to-book value) ratios of YY, Youku Tudou (YOKU), SINA, Sohu.com (SOHU), and NetEase are 8.1x, 2.5x, 1.4x, 1.6x, and 5.4x, respectively.

Thus, YY Inc. is ahead of its peers based on PBV.

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ETFs that invest in YY Inc.

The Global X Nasdaq China Technology ETF (QQQC) invests 3.8% of its holdings in YY.

The PowerShares Golden Dragon China Portfolio ETF (PGJ) invests 2.5% of its holdings in YY. The ETF tracks a market-cap-weighted index of Chinese stocks. The fund strictly holds US-listed companies that derive a majority of their revenues in China.

The Guggenheim China Technology ETF (CQQQ) invests 1.7% of its holdings in YY. The ETF tracks a cap-weighted index of investable Chinese technology stocks. The fund invests across the market-cap spectrum.

Comparing YY and its ETFs

An analysis of YY and its ETFs is as follows:

  • The year-to-date price movements of YY, QQQC, PGJ, and CQQQ are -4.4%, 12.7%, 15.4%, and 7.4%, respectively.
  • The PE ratios of YY, QQQC, PGJ, and CQQQ are 19.4x, 15.7x, 25.6x, and 20.3x, respectively.
  • The PBV ratios of YY, QQQC, PGJ, and CQQQ are 8.1x, 2.5x, 3.1x, and 2.6x, respectively.

According to the findings above, ETFs have outperformed YY based on price movement and PE. However, YY is ahead of its ETFs based on PBV.


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