Sohu.com Limited American Depositary Shares (SOHU)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Current Price$12.61
Market Cap$458M
P/E Ratio1.63
ROE19.42%
Dividend Yield—%
SectorCommunication Services

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close, Sohu.com Limited traded at $12.56 with a $458.5 million market cap. FairStock calculates a P/E of 1.63 and a price-to-book of 0.25. The Graham Number is $93.60, giving an 86.58% margin of safety, and the FairStock Score is 76/100. Those are Graham-like numbers, but only if the earnings and assets are real and durable. The company operates online media and gaming in China through its Sohu and Changyou segments. Media is competitive and game hits are unpredictable, so I do not see a clearly durable moat from the figures provided. Financial health is mixed: debt-to-equity is 0.00, FairStock's ROE is 19.42%, but ROCE is -1.54%, the Piotroski F-Score is 3/9, and the Altman Z-Score is 1.35. In fiscal Q2 2026, revenue was $135.5 million and net income was $969,000, a 0.71% margin. That is razor-thin, and the supplied profit trend is negative. The Peter Lynch category is none because only 0 years of filed annual results are available, while 3 are needed. The low beta of 0.34 and 52-week range of $11.61-$17.30 suggest a neglected, sleepy security. A low P/E and P/B can signal opportunity, but they can also signal a value trap when returns on capital are weak and profits are fragile. I would need evidence that asset values and earnings are stable before treating this as a true bargain.

In plain English: Sohu.com Limited runs online media and online games in China. The business is barely profitable right now and its profits have weakened, but it has no debt. The shares look cheap compared with the value of its assets and its past profits, though that low price may reflect real business risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer