2 models fit Xunlei Limited American Depositary Shares and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, Graham number, and Dividend discount.
ACCE opinionXunlei Limited American Depositary Shares (XNET)
Fair value (2 models)
$3.09
ACCE price target
$5.00
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $3.95 since 7 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $3.85 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
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
24.6% above
-19.7% to fair value
ACCE score
36
out of 100
P/E
0.0x
forward 49.0x
1-year return
-57.9%
Dividend yield
0.00%
Xunlei Limited American Depositary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Xunlei operates a cloud acceleration and download-acceleration business in China, alongside its Thunder software and a smaller set of cloud and NAS-oriented products, and its gross margin of 49.5% shows the software layer still earns a decent spread on what it sells. The structural case is thin, though: revenue is shrinking at 1.4%, operating margin is negative at -4.7%, and ROE sits at -8.9%, so the company is not yet converting its gross profit into earnings. A forward P/E of 49.0 against a trailing P/E of zero means the market is pricing a recovery in profitability that the reported numbers do not yet show. With a $296M market cap, no index membership, and a score of 36/100, the name has little in the way of a near-term catalyst that would bring new institutional buyers. It is worth a deeper look only if the review is focused on whether margins can turn positive while the top line stabilises.