2 models fit Sohu.com Limited American Depositary Shares and they agree: 2 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Near fair value(i)
Valued as a mature, profitable company: Discounted cash flow, Graham number, and Dividend discount.
ACCE opinionSohu.com Limited American Depositary Shares (SOHU)
Fair value (2 models)
$13.85
ACCE price target
$12.40
Rating
Fairly valued
Horizon
12 months
Fair value published on 20 Oct 2026, 14:06 CEST; previously $15.44 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 14:06 CEST.
Price used: $12.61 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
8.9% below
+9.8% to fair value
ACCE score
46
out of 100
Analysts
100% buy
2 covering
P/E
1.5x
forward 9.1x
1-year return
-13.1%
Dividend yield
0.00%
Sohu.com Limited American Depositary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Sohu.com operates Sogou, its search and AI-assisted input and browser products, alongside its legacy online media and gaming businesses in China, which keep the revenue base but are shrinking in relevance. The bull case rests on the gap between a 78.5% gross margin and a -13.5% operating margin: if the company can cut costs in its media and search segments, the gross profit already in the business should flow through to earnings. At 1.5 times trailing earnings and 9.1 times forward, the market is pricing in little of that, while revenue is still growing 7.3% and return on equity sits at 19.4%. The stock carries a 54/100 score and no index membership, so it is a small, under-followed name where a single turn in operating losses could move the multiple sharply. Whether that operating turn arrives, and whether the Sogou search franchise can hold share against larger Chinese competitors, is what the deeper work needs to settle.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapsing despite revenue growth
Revenue grew 7.3% year on year, yet earnings fell 75.7%. The company is not converting top-line growth into profit, and operating margin is -13.5%.
moderate
Negative free cash flow
Free cash flow was $-14,457,130. Even with a low debt load (Debt/Equity 0.03), the business is burning cash rather than generating it.
moderate
Long-term revenue decline
The five-year revenue CAGR is -4.9%, so the recent 7.3% growth follows a longer stretch of shrinking sales and may not yet be a sustained trend.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 7.3% year over year, a turn after a five-year average decline of 4.9% per year.
Net margin of 38.1% and return on invested capital of 24.6% show the business earns strong profits on the capital it uses.
Diluted share count fell 11.8% in the last fiscal year, and analysts' mean price target of $19.50 sits well above the share price.
Why it could disappoint
Free cash flow over the last twelve months was negative at -$14M, a yield of -3.8%, so reported profits are not turning into cash.
The stock trades at a trailing P/E of 1.5x, which looks cheap but may reflect doubts about earnings quality given the non-operating gains flagged in risk checks.
Consensus model fair value of $13.85 sits 8.9% above the price, and only 2 of 3 valuation models feed that figure.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 16, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where SOHU's valuation models land
Price
$12.61
Model fair value
$13.85
Model range
$13.19 to $15.16
Fair value $13.85
Price $12.61
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
Graham number
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