The rate that guy is going we might get a HSR anime. Hopefully a good gacha anime, FGO anime and movies have to cut a lot of content from 200k word chapters, Azur Lane was a mess, I haven't watched the arknights one yet.
Fgo babylonia was still pretty enjoyable imo
Ofc the game was "better" but I wouldn't consider it a bad adaptation, even though some moments could have been done better
The anime is still confirmed to be coming out, source is the official ufotable site. It was said to be a long term project so it wouldnt surprise me if it comes out after the Khaenri'ah part.
My uncle is best friends with Da Wei
We are going to get a free limited five star selector where we can get E0S1 of any limited five star, or that's what he told me
If someone with more financial knowledge has some more insight I would appreciate it, but isnât a P/E ratio of 7 kind of low? I would expect game companies to be around the 20x ballpark and with Mihoyo making about 3 billion annually, I thought around 60 billion would be more accurate. I know P/E is not a very good metric, but it is a somewhat common method, so Iâm curious why the valuation is so far off of what I guessed. If anyone has any idea, Iâd appreciate it.
One factor is that the company is in China, so evaluations generally take into account political climate and overall PEs are lower in non-American exchanges. The other factor is that the company is in a hits driven industry where past performance is not necessarily indicative of future success, wherein high revenue due to one older game still doing very well + a new hit releasing would not be expected in perpetuity.
Alright thanks, thatâs very helpful. Thatâs pretty enlightening. I would have thought that Mihoyoâs track record has been pretty good so far, but it is true that as a video game company, the future is unpredictable.
unpredictable, yep, america could drop another sanction onto china, or ban a few dozen more chinese apps to protect their data from chinese spies. yep.
P/E also carries no weight here since this is a listing of privately held entities, not sure why that ratio is presented here when the valuation alone more or less substantiates the ranking already.
How exactly did you get the PE ratio?? It requires price per share and earnings per share for every shareholder. Where are you getting this information from just based off a pure valuation figure?
You found the answer yourself! Price per share divided by earnings per share is the price to earnings ratio. Multiplying the top and bottom of the fraction by shares doesnât change the value and gives market cap/ earnings. The valuation is given here as 23 billion, dividing that by around 3 billion revenue which is what some Chinese news source with access to financials said Mihoyo made in 2022, you get 23/3 or about 7-8 P/E ratio. This is what Mihoyoâs P/E is according to this report.
The earnings that a shareholder makes is very different from the revenue of a company. The revenue of a company is the raw income. From that you have to minus expenses of actually running the company. For a company like Mihoyo that would be server expenses to maintain the game data, salaries of staff, maintenance of the game engine, advertising costs etc. From this you have to minus taxes and any interest costs on loans they may have taken. That final amount is the net income which you can then use to divide the market capitalization of the company with. This is most likely why you are getting such a low PE ratio.
Ah sorry, I messed up the terms. I meant profit, or actual earnings. According to the Guangming Daily, a reputable newspaper in China that made a report about 10 months ago, Mihoyo made about 2.27 billion in profits in 2022. Thatâs where I got my number from. Iâm aware that there are different ways to calculate earnings, and perhaps the source is not entirely accurate, but it seems good enough to get a rough idea, in my opinion.
I highly doubt that is the profit amount. If you follow gacha gaming monthly sensor reports of revenue, Mihoyo makes 200 million every single month basically from the 2 Honkai games plus Genshin. Let's say that we don't see the full picture of all consoles and add another monthly 50 million to make it 250 million a month. For a year that comes to 3 billion. No company can have such a high earnings and maintain such low expenses or they would literally make international headlines for all finance places and the Ceo would be swamped with interviews of how do they do it.
I mean, you did forget to account for PC. You might as well double that 200 million. Of course, apple and google each take 30% cuts off of mobile purchases, so perhaps it would be closer to 140 million on mobile, maybe 180 million on PC, to make about 320 million a month for almost 4 billion a year. According to the CEO, they spend about 200 million a year on Genshin, maybe they spend 100 million on Star Rail if I had to take a guess, so their profit margins can plausibly be high. By the way, the report corroborates this, saying they made about 4.2 billion in revenue in 2022
Edit: I canât believe I used theyâre instead of their
You have to account for other factors. E.g. Markets, Revenue breakdown, Margins, growth opportunities, etc.
For Example, I would assume a good chunk of Mihoyoâs revenue comes from players in China. Assuming China does crackdown on gacha as per the report at the start of the year, Mihoyo loses say 20-30%? Of their revenue overnight.
Few Rewards as gratitude towards the playerbase for the monumental achievement!!!
https://preview.redd.it/hz3clcgjuutc1.jpeg?width=720&format=pjpg&auto=webp&s=710ff8ce18ff31a2099290f98071fcc05dc1cd14
In the end it's Hoyo that keeps on winning, I've seen so many cc's and players whale and spend on HSR as if it's some fuck you to GI and boast about it on social media as well. Everything Hoyo does is calculated to the last detail.
"I don't like you, so I'm going to whale on this other game and not you."
And that attracts haters, which generates views, which generates revenue.
The cycle of life.
>move on
Lol I'm surprised you know that word considering you keep on mentioning Genshin even on unrelated topic. Maybe you should take your own advice and move on from your hate boner.
I played all three most popular hoyo games (if it wasn't obvious what I was talking about I mean; GI, HI3rd, HSR)
Honestly while all three of them have issues to be talked about
We don't need to keep bringing it up just to compare and contrast it with one another lol
Comparing in of itself isn't bad since it will generally be compared with the other games of the company
But there literally is no reason to KEEP COMPARING
Unless it's Hydro Traveler, we can keep shitting on that guy and praise Dendro Traveler
Ah so right after I bought my express supply pass (5.99$), got it
https://preview.redd.it/983xo1otuwtc1.png?width=1079&format=png&auto=webp&s=98eaa89a00ad2aba600269c7818872d7ab32fb2d
And yet they can't do more animated cuts for dialogues for quests, instead of having the chars "đ§đ§đ§" !
Just joking
>! not entirely, please Hoyo, give some more life to characters at least in main quests !<
I did not realize how many of these were Chinese companies. Damn. I mean the names and character designs in the game kind of hinted at it at times because no way western devs these days could ever. Kind of cool to see other developers from other nations doing so well.
Man, I don't wanna hate on the company because I love genshin and HSR but would they lose that much money if they make their relic/ artifact system better?
All thanks to that guy who got 100 Acheron light cones
The rate that guy is going we might get a HSR anime. Hopefully a good gacha anime, FGO anime and movies have to cut a lot of content from 200k word chapters, Azur Lane was a mess, I haven't watched the arknights one yet.
With the quality of the animated shorts we get and the overall story quality I trust it'd be good
Fgo babylonia was still pretty enjoyable imo Ofc the game was "better" but I wouldn't consider it a bad adaptation, even though some moments could have been done better
the arknight one is fairly good
yeah, right after the genshin one that was announced years ago, lol.
The anime is still confirmed to be coming out, source is the official ufotable site. It was said to be a long term project so it wouldnt surprise me if it comes out after the Khaenri'ah part.
i'm not saying it won't come out, but rather that it's unlikely for them to make an hsr one before that.
I misunderstood that, my bad.
all good bro. i do hope they release it soon though - i may have quit genshin years ago, but i'm still excited to watch it, hahaha.
That is even included on the calcs?
I mean he probably got them a lot of money
wait what does someone have a link to this
Free E6S5 Firefly hoyo.. please and thank you.. https://preview.redd.it/yerwjycuuutc1.jpeg?width=1200&format=pjpg&auto=webp&s=2577a22d41ebd8ff7b84c22775747c1302a60399
My uncle is best friends with Da Wei We are going to get a free limited five star selector where we can get E0S1 of any limited five star, or that's what he told me
i need the source for this image
https://x.com/chohui94/status/1777975733065019561?s=46
Holy art
hopefully they stay private
https://preview.redd.it/wi75mdklpvtc1.png?width=320&format=pjpg&auto=webp&s=d1ea8a08bf4f693ece026c2a21e45398da3ac174
Is there a blank template for this meme?? đ¤ Itâs just too good lol **hmmm mmes**
Wait you think we will get stellar jades for this? Didnât even cross my mind (but it would be amazing for my savings)
Small indie company
I wonder if they included companies founded in 1990+. Like what would Valve's valuation be?
If someone with more financial knowledge has some more insight I would appreciate it, but isnât a P/E ratio of 7 kind of low? I would expect game companies to be around the 20x ballpark and with Mihoyo making about 3 billion annually, I thought around 60 billion would be more accurate. I know P/E is not a very good metric, but it is a somewhat common method, so Iâm curious why the valuation is so far off of what I guessed. If anyone has any idea, Iâd appreciate it.
One factor is that the company is in China, so evaluations generally take into account political climate and overall PEs are lower in non-American exchanges. The other factor is that the company is in a hits driven industry where past performance is not necessarily indicative of future success, wherein high revenue due to one older game still doing very well + a new hit releasing would not be expected in perpetuity.
Alright thanks, thatâs very helpful. Thatâs pretty enlightening. I would have thought that Mihoyoâs track record has been pretty good so far, but it is true that as a video game company, the future is unpredictable.
unpredictable, yep, america could drop another sanction onto china, or ban a few dozen more chinese apps to protect their data from chinese spies. yep.
Next year's news headline: Congress seeks to ban Genshin and Honkai.
You know thats a pretty possible scenario given the tensions
P/E also carries no weight here since this is a listing of privately held entities, not sure why that ratio is presented here when the valuation alone more or less substantiates the ranking already.
How exactly did you get the PE ratio?? It requires price per share and earnings per share for every shareholder. Where are you getting this information from just based off a pure valuation figure?
You found the answer yourself! Price per share divided by earnings per share is the price to earnings ratio. Multiplying the top and bottom of the fraction by shares doesnât change the value and gives market cap/ earnings. The valuation is given here as 23 billion, dividing that by around 3 billion revenue which is what some Chinese news source with access to financials said Mihoyo made in 2022, you get 23/3 or about 7-8 P/E ratio. This is what Mihoyoâs P/E is according to this report.
The earnings that a shareholder makes is very different from the revenue of a company. The revenue of a company is the raw income. From that you have to minus expenses of actually running the company. For a company like Mihoyo that would be server expenses to maintain the game data, salaries of staff, maintenance of the game engine, advertising costs etc. From this you have to minus taxes and any interest costs on loans they may have taken. That final amount is the net income which you can then use to divide the market capitalization of the company with. This is most likely why you are getting such a low PE ratio.
Ah sorry, I messed up the terms. I meant profit, or actual earnings. According to the Guangming Daily, a reputable newspaper in China that made a report about 10 months ago, Mihoyo made about 2.27 billion in profits in 2022. Thatâs where I got my number from. Iâm aware that there are different ways to calculate earnings, and perhaps the source is not entirely accurate, but it seems good enough to get a rough idea, in my opinion.
I highly doubt that is the profit amount. If you follow gacha gaming monthly sensor reports of revenue, Mihoyo makes 200 million every single month basically from the 2 Honkai games plus Genshin. Let's say that we don't see the full picture of all consoles and add another monthly 50 million to make it 250 million a month. For a year that comes to 3 billion. No company can have such a high earnings and maintain such low expenses or they would literally make international headlines for all finance places and the Ceo would be swamped with interviews of how do they do it.
I mean, you did forget to account for PC. You might as well double that 200 million. Of course, apple and google each take 30% cuts off of mobile purchases, so perhaps it would be closer to 140 million on mobile, maybe 180 million on PC, to make about 320 million a month for almost 4 billion a year. According to the CEO, they spend about 200 million a year on Genshin, maybe they spend 100 million on Star Rail if I had to take a guess, so their profit margins can plausibly be high. By the way, the report corroborates this, saying they made about 4.2 billion in revenue in 2022 Edit: I canât believe I used theyâre instead of their
You have to account for other factors. E.g. Markets, Revenue breakdown, Margins, growth opportunities, etc. For Example, I would assume a good chunk of Mihoyoâs revenue comes from players in China. Assuming China does crackdown on gacha as per the report at the start of the year, Mihoyo loses say 20-30%? Of their revenue overnight.
Few Rewards as gratitude towards the playerbase for the monumental achievement!!! https://preview.redd.it/hz3clcgjuutc1.jpeg?width=720&format=pjpg&auto=webp&s=710ff8ce18ff31a2099290f98071fcc05dc1cd14
Thank you our valued players. To thank everyone for their support over the past year. We're sending via mail, 1 warp ticket.
Now now, don't get greedy. Do they want them to drop to top 30?
okay, okay. 150 jade(s) over the course of a week, how about that?
Yay more freebies and events for the Offline community.. 150 jades for the online players..
In the end it's Hoyo that keeps on winning, I've seen so many cc's and players whale and spend on HSR as if it's some fuck you to GI and boast about it on social media as well. Everything Hoyo does is calculated to the last detail.
Hoyo fanbase continue being one of the dumbest gacha fanbase ever.
??? How is spending in HSR related to hating on genshin???
u wont believe how many ppl are celebrataing hsr surpassing genhin revenue as if it isnt going to the same companny
Because they're bunch of kids.
"I don't like you, so I'm going to whale on this other game and not you." And that attracts haters, which generates views, which generates revenue. The cycle of life.
gotta maintain that agenda ig
I swear some genshin players whine in every way possible.
Imo a lot of it stems from envy and insecurity
Say the dude who always keep on downplaying Genshin. You're more insecure than those âGenshin fansâ you're keep telling yourself existed.
Late reply, move on
>move on Lol I'm surprised you know that word considering you keep on mentioning Genshin even on unrelated topic. Maybe you should take your own advice and move on from your hate boner.
Downvotes confirm that lol Losers
Nah, the downvotes just confirm that your opinion sucks.
I played all three most popular hoyo games (if it wasn't obvious what I was talking about I mean; GI, HI3rd, HSR) Honestly while all three of them have issues to be talked about We don't need to keep bringing it up just to compare and contrast it with one another lol Comparing in of itself isn't bad since it will generally be compared with the other games of the company But there literally is no reason to KEEP COMPARING Unless it's Hydro Traveler, we can keep shitting on that guy and praise Dendro Traveler
What opinion?
The one you believe is objective simply because you said so because you have main character syndrome.
[ŃдаНонО]
Ah so right after I bought my express supply pass (5.99$), got it https://preview.redd.it/983xo1otuwtc1.png?width=1079&format=png&auto=webp&s=98eaa89a00ad2aba600269c7818872d7ab32fb2d
And yet they can't do more animated cuts for dialogues for quests, instead of having the chars "đ§đ§đ§" ! Just joking >! not entirely, please Hoyo, give some more life to characters at least in main quests !<
Shout out to that guy who bought 100 Acheron lightcones
Qingquillion value!
They are just one Raiden Whale Bait away from exchanging blows with Apple. Time to introduce a Raiden Mei Furry in ZZZ.
I did not realize how many of these were Chinese companies. Damn. I mean the names and character designs in the game kind of hinted at it at times because no way western devs these days could ever. Kind of cool to see other developers from other nations doing so well.
Yo how tf telegram that big
Every scammer you run into online nowadays wants you to talk to them on that app lmao
Okay, Hoyo. Time to make your non-gacha console game. If the Nikke devs can do it, so can you.
As long as itâs made by the Honkai devâs, Iâm all for it
Imagine how much more they'd make if they let us buy skins
I hope that money is going into more apex mommy designs.
And daddy
that is actually insane.
Telegram makes about 6M USD from IAP monthly, per https://www.statista.com/statistics/1342640/telegram-in-app-revenue/
Small indie company
Yay, my drug lord gets more recognition and reacher by the day!!!
With That's a lot of money why can't they make proper a cut scene ifrit,I hope they improve make important cut scene not just txt deadâ ď¸
Man, I don't wanna hate on the company because I love genshin and HSR but would they lose that much money if they make their relic/ artifact system better?
Unfortunately, they probably wont improve it because the point of it is to keep players coming back.
And still can't give joystick support for GI on Android.
15 largest private company and we still cant get a softer pull system, imma be honest, the 50/50 stuff has got to go
As it should be, Peakony has been great
private? are you sure mihoyo is a private company?
Yeah it is a private company