Is Zhihu Stock a Good Investment?

Zhihu Investment Advice

To provide specific investment advice or recommendations on Zhihu Inc ADR stock, we recommend investors consider the following general factors when evaluating Zhihu Inc ADR. This will help you to make an informed decision on whether to include Zhihu in one of your diversified portfolios:

Examine Zhihu's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Zhihu's leadership team and their track record. Good management can help Zhihu navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Zhihu's business and its evolving consumer preferences.
Compare Zhihu's performance and market position to its competitors. Analyze how Zhihu is positioned in terms of product offerings, innovation, and market share.
Check if Zhihu pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Zhihu's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Zhihu Inc ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zhihu Inc ADR is a good investment.

Sell

Buy

Sell

We provide recommendation to complement the prevalent expert consensus on Zhihu Inc ADR. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Zhihu Inc ADR is not overpriced, please check out all Zhihu Inc ADR fundamentals, including its debt to equity, and the relationship between the gross profit and target price . Given that Zhihu Inc ADR has a number of shares shorted of 1.3 M, we strongly advise you to confirm Zhihu Inc ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Moderately volatile	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Average	Details
Economic Sensitivity	Barely shadows the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Zhihu Stock

Researching Zhihu's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 25.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 0.49. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Zhihu Inc ADR recorded a loss per share of 0.53. The entity had not issued any dividends in recent years. The firm had 1:6 split on the 10th of May 2024.

To determine if Zhihu is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zhihu's research are outlined below:

	Zhihu Inc ADR generated a negative expected return over the last 90 days
	Zhihu Inc ADR has high historical volatility and very poor performance
	The company generated the yearly revenue of 4.2 B. Annual Net Loss to common stockholders was (839.53 M) with gross profit of 2.32 B.
	Zhihu Inc ADR reports about 4.53 B in cash with (415.53 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.19, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
	Zhihu Inc ADR has a poor financial position based on the latest SEC disclosures
	Latest headline from finance.yahoo.com: When Will Zhihu Inc. Breakeven

Zhihu Quarterly Cost Of Revenue

304.88 Million

Zhihu uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zhihu Inc ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zhihu's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	27th of March 2024 Upcoming Quarterly Report	View
	31st of December 2023 Next Fiscal Quarter End	View

Earnings surprises can significantly impact Zhihu's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zhihu's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-11-29	2023-09-30	-0.46	-0.38	0.08	17
2022-03-14	2021-12-31	-0.53	-0.41	0.12	22
2024-03-26	2023-12-31	-0.28	-0.15	0.13	46
2021-11-22	2021-09-30	-0.34	-0.19	0.15	44
2022-08-30	2022-06-30	-1.02	-0.72	0.3	29
2023-03-22	2022-12-31	-0.61	-0.3	0.31	50
2022-11-30	2022-09-30	-0.79	-0.41	0.38	48
2021-08-16	2021-06-30	-0.72	-0.34	0.38	52

Zhihu Target Price Consensus

Zhihu target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Zhihu's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

7	Strong Buy

Most Zhihu analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Zhihu stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Zhihu Inc ADR, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Zhihu Target Price Projection

Zhihu's current and average target prices are 3.35 and 4.70, respectively. The current price of Zhihu is the price at which Zhihu Inc ADR is currently trading. On the other hand, Zhihu's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Zhihu Market Quote on 18th of January 2025

Low Price	3.26	Odds
High Price	3.5	Odds

3.35 Target Price

Analyst Consensus On Zhihu Target Price

Low Estimate	4.28	Odds
High Estimate	5.22	Odds

4.7047

Historical

Lowest Forecast 4.28

Target Price 4.7

Highest Forecast 5.22

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Zhihu Inc ADR and the information provided on this page.

Zhihu Analyst Ratings

Zhihu's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Zhihu stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Zhihu's financials, market performance, and future outlook by experienced professionals. Zhihu's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Zhihu's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Zhihu is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zhihu Inc ADR backward and forwards among themselves. Zhihu's institutional investor refers to the entity that pools money to purchase Zhihu's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Barclays Plc	2024-09-30	132.8 K
State Street Corp	2024-09-30	115.6 K
Renaissance Technologies Corp	2024-09-30	87.6 K
California Public Employees Retrmnt Sys	2024-09-30	84.2 K
E Fund Management Co., Ltd.	2024-09-30	82.4 K
E Fund Management (hk) Co., Ltd	2024-09-30	82.4 K
Nomura Holdings Inc	2024-09-30	75 K
Walleye Trading Advisors, Llc	2024-09-30	55 K
(junk)commonwealth Pps	2024-09-30	52.5 K
Vanguard Group Inc	2024-09-30	3 M
Goldman Sachs Group Inc	2024-09-30	2.7 M

Note, although Zhihu's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Zhihu's market capitalization trends

The company currently falls under 'Small-Cap' category with a market capitalization of 280.26 M.

Market Cap

1.4 Billion

Zhihu's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.13)	(0.12)
Return On Capital Employed	(0.20)	(0.21)
Return On Assets	(0.11)	(0.12)
Return On Equity	(0.21)	(0.22)

The company has Net Profit Margin (PM) of (0.16) %, which may indicate that it does not properly execute on its own pricing strategies. This is way below average. Likewise, it shows Net Operating Margin (NOM) of (0.2) %, which signifies that for every 100 dollars of sales, it has a net operating loss of $0.2.

Determining Zhihu's profitability involves analyzing its financial statements and using various financial metrics to determine if Zhihu is a good buy. For example, gross profit margin measures Zhihu's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zhihu's profitability and make more informed investment decisions.

Evaluate Zhihu's management efficiency

Zhihu Inc ADR has Return on Asset (ROA) of (0.0852) % which means that for every 100 dollars spent on asset, it generated a loss of $0.0852. This is way below average. Likewise, it shows a return on total equity (ROE) of (0.1289) %, which implies that it produced no returns to current stockholders. Zhihu's management efficiency ratios could be used to measure how well Zhihu manages its routine affairs as well as how well it operates its assets and liabilities. The Zhihu's current Return On Tangible Assets is estimated to increase to -0.12. The current Return On Capital Employed is estimated to decrease to -0.21. As of now, Zhihu's Net Tangible Assets are increasing as compared to previous years. The Zhihu's current Non Currrent Assets Other is estimated to increase to about 12.7 M, while Total Assets are projected to decrease to under 6.8 B.

	Last Reported	Projected for Next Year
Book Value Per Share	42.44	44.56
Tangible Book Value Per Share	39.61	41.59
Enterprise Value Over EBITDA	0.67	0.71
Price Book Value Ratio	0.25	0.39
Enterprise Value Multiple	0.67	0.71
Price Fair Value	0.25	0.39
Enterprise Value	-900.9 M	-855.8 M

Examining the leadership quality of Zhihu Inc ADR offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.

Beta

0.189

Basic technical analysis of Zhihu Stock

As of the 18th of January 2025, Zhihu maintains the Mean Deviation of 2.21, market risk adjusted performance of (2.61), and Standard Deviation of 3.1. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zhihu Inc ADR, as well as the relationship between them.

Zhihu's Outstanding Corporate Bonds

Zhihu issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zhihu Inc ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zhihu bonds can be classified according to their maturity, which is the date when Zhihu Inc ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	ZIGGO BD FIN Corp Bond US98954UAB98	View
	International Game Technology Corp Bond US460599AD57	View
	ZIMMER BIOMET HLDGS Corp Bond US98956PAG72	View
	ZIMMER BIOMET HLDGS Corp Bond US98956PAF99	View
	US98956PAB85 Corp Bond US98956PAB85	View
	ZIMMER BIOMET HLDGS Corp Bond US98956PAH55	View
	ZBH 26 24 NOV 31 Corp Bond US98956PAV40	View
	ZIMMER BIOMET HOLDINGS Corp Bond US98956PAT93	View

View All Zhihu Corporate Bonds

Understand Zhihu's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Zhihu's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.06)
	Market Risk Adjusted Performance	(2.61)
	Mean Deviation	2.21
	Coefficient Of Variation	(1,288)
	Standard Deviation	3.1
	Variance	9.6
	Information Ratio	(0.08)
	Jensen Alpha	(0.25)
	Total Risk Alpha	(0.24)
	Treynor Ratio	(2.62)
	Maximum Drawdown	20.39
	Value At Risk	(4.57)
	Potential Upside	4.11
	Skewness	1.5
	Kurtosis	5.69

	Risk Adjusted Performance	(0.06)
	Market Risk Adjusted Performance	(2.61)
	Mean Deviation	2.21
	Coefficient Of Variation	(1,288)
	Standard Deviation	3.1
	Variance	9.6
	Information Ratio	(0.08)
	Jensen Alpha	(0.25)
	Total Risk Alpha	(0.24)
	Treynor Ratio	(2.62)
	Maximum Drawdown	20.39
	Value At Risk	(4.57)
	Potential Upside	4.11
	Skewness	1.5
	Kurtosis	5.69

Consider Zhihu's intraday indicators

Zhihu intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zhihu stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	14810.54
	Daily Balance Of Power	0.375
	Rate Of Daily Change	1.03
	Day Median Price	3.38
	Day Typical Price	3.37
	Price Action Indicator	0.015
	Period Momentum Indicator	0.09

Zhihu Corporate Filings

6K	10th of January 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
F3	13th of November 2024 An amendment to the original Schedule 13D filing	View Verify
	30th of October 2024 Other Reports	View Verify
	9th of September 2024 Other Reports	View Verify

Zhihu time-series forecasting models is one of many Zhihu's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Zhihu's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Zhihu Stock media impact

Far too much social signal, news, headlines, and media speculation about Zhihu that are available to investors today. That information is available publicly through Zhihu media outlets and privately through word of mouth or via Zhihu internal channels. However, regardless of the origin, that massive amount of Zhihu data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Zhihu news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zhihu relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zhihu's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zhihu alpha.

Zhihu Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Zhihu can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Zhihu Corporate Management

Dahai Li	CTO Director	Profile
Bin Sun	Chief Officer	Profile
Yuan Zhou	Chairman Founder	Profile
Wei Sun	CFO Director	Profile
Yee Lau	Company Secretary	Profile
Wang Han	Chief Officer	Profile
Han Wang	Chief Officer	Profile

Already Invested in Zhihu Inc ADR?

The danger of trading Zhihu Inc ADR is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zhihu is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zhihu. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zhihu Inc ADR is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.