Zhengye Biotechnology Holding Limited Class A Ordinary Shares (ZYBT) fair value
Healthcare · Drug Manufacturers - Specialty & Generic · NASDAQ · United States
$1.50+2.74%
Market cap $69MUpdated Oct 20, 2026
Our verdict
Trades 496% above our fair value
Price
$1.50
Model fair valueConfidence: low
about $0.25
Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
Not used by alerts or posts.
Valued as a mature, profitable company: Discounted cash flow.
ACCE opinionZhengye Biotechnology Holding Limited Class A Ordinary Shares (ZYBT)
Fair value
Not available
ACCE price target
$1.40
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $1.50 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow.
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
ACCE score
33
out of 100
P/E
0.0x
forward 0.0x
1-year return
-40.5%
Dividend yield
0.00%
Zhengye Biotechnology Holding Limited Class A Ordinary Shares in four questions
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Overview
ACCE thesis
Zhengye Biotechnology is a small Chinese specialty and generic drug maker with a $71M market cap, and the numbers you have to work through are poor: revenue fell 40.9%, operating margin is -77.0%, and return on equity is -25.2%, against a 20.5% gross margin that shows the product mix still earns something at the unit level. The structural case for a Chinese generics maker rests on volume-based procurement and cheap domestic demand, but the financials here show a business shrinking faster than any tailwind is helping it. The score of 33/100 and the absence of index membership point the same way. A deeper look is only worth the time if you want to test whether the revenue decline is pricing pressure from procurement tenders or lost product lines, since the answer determines whether the gross margin can be rebuilt.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
severe
Shrinking revenue and earnings
Revenue fell 40.9% year on year and earnings fell 79.6%, with a 5-year revenue CAGR of -14.1%. Operating margin is -77.0% and net margin is -60.0%, so the business is losing money on sales.
high
Negative returns on equity
ROE is -25.2%, so shareholder capital is being eroded. With a $66M market cap and only $703,000 of free cash flow, the balance sheet offers little cushion if losses continue.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-03-31 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months was positive at CNY 703,000, so the business is not burning cash on its own operations.
Debt to equity sits at 0.30, a modest level of borrowing relative to the company's own book value.
Shares outstanding rose only 0.4% last fiscal year, so existing holders have not been heavily diluted.
Why it could disappoint
Revenue fell 40.9% year over year, and the five-year average annual change is negative 14.1%, a sustained shrinking trend.
Net margin of negative 60.0% means the company loses far more than it keeps from each sale.
Return on equity of negative 25.2% and return on invested capital of negative 17.6% show the business is destroying the capital put into it.
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Valuation
INVESTOR
Where ZYBT's valuation models land
Price
$1.50
Model fair valueConfidence: low
about $0.25
Model
Fair value
Upside
Discounted cash flow
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