YY, Inc. engages in managing a communication social platform, which enables users to join real-time online group activities through voice, text, and video. Its services include music and entertainment, online games, online dating, live game broadcasting, online education, and advertising. The company was founded by Xueling Li and Jun Lei in April 2005 and is headquartered in Guangzhou, China.
There is also scope for faster earnings growth as margins should increase with user numbers and with the introduction of new media streaming products. As such, a PE of 25 seems reasonable.
This produces a valuation of $150 and a return over 200%.