Assessing iQIYI (NasdaqGS:IQ) Valuation As Shares Face Weaker Multi Period Returns

Simply Wall St

Wed, February 11, 2026 at 3:14 PM GMT+9 3 min read

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iQIYI stock: key snapshot for investors

iQIYI (NasdaqGS:IQ) is drawing attention after recent trading left the share price at US$1.97, with returns over the past month and past 3 months both in negative territory.

See our latest analysis for iQIYI.

That US$1.97 share price comes after a mixed stretch, with a small 1 day and 7 day share price gain sitting against a 30 day share price return of 3.9% decline and a 1 year total shareholder return of 14% decline. This points to fading momentum over a longer window.

If this kind of pressure on a single name has you widening your watchlist, it could be a good moment to scan our list of 23 top founder-led companies for fresh ideas beyond large, well known platforms.

With the share price under pressure over 1, 3 and 5 years, yet trading around a 20% discount to analyst targets and showing recent revenue and net income growth, is this a mispriced recovery story, or is the market already factoring in future growth?

Most Popular Narrative: 15.8% Undervalued

At $1.97, iQIYI is trading below a widely followed fair value estimate of $2.34, and that gap rests on some very specific growth and margin assumptions.

Initiatives in IP based consumer products and offline “experience” businesses (theme parks and immersive centers) are opening new, scalable revenue streams beyond core streaming, enhancing overall monetization and potentially improving net margins as these asset light strategies mature.

Read the complete narrative.

Curious how a video platform fair value pushes above the current price? This narrative leans heavily on steadier revenue growth and a meaningful lift in profitability over the next few years. It also assumes the market will later accept a richer earnings multiple than today. The exact mix of revenue, margins and valuation is where the story gets interesting.

Result: Fair Value of $2.34 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, the narrative could easily crack if costly blockbuster content fails to land with viewers or if overseas expansion hits regulatory or competitive roadblocks.

Find out about the key risks to this iQIYI narrative.

Another View: Cash Flows Tell A Different Story

The popular narrative has iQIYI at a fair value of $2.34 and looking 15.8% undervalued at $1.97. Our DCF model, however, points the other way, with a future cash flow value of $1.58, implying the shares are trading above this estimate. Which lens do you trust more: earnings or cash flows?

Story Continues  

Look into how the SWS DCF model arrives at its fair value.

IQ Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out iQIYI for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own iQIYI Narrative

If parts of this story do not sit right with you, or you would rather test the numbers yourself, you can build a custom view in minutes by starting with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding iQIYI.

Looking for more investment ideas?

If iQIYI has sharpened your thinking, do not stop here. Use the screener to spot other opportunities that fit your style before the market reacts.

Target income potential by reviewing 14 dividend fortresses that could suit a portfolio focused on regular cash returns.

Hunt for quality at a discount with our 51 high quality undervalued stocks sourced directly from valuation checks across global markets.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include IQ.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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