Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.00, read 2026-11-04
Ethical does not pass the values gate
Price2.75 USD
Fair value2.66
Ethical score70.0/100
Value readFairas of 6 Nov 2026
Our investment reviews on this name
2026-11-06Read Distribution2.67+3.0% to today Markdown gives way to Distribution after a 21% slide in 7 days
2026-10-30Read Markdown3.37-18.4% to today ✓Markup gives way to Markdown first Markdown read since July
2026-10-02Read Markup3.45-20.3% to today Distribution gives way to Markup after a 9% rise in 2 weeks
2026-09-18Read Distribution3.17-13.2% to today ✓Accumulation gives way to Distribution
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Zhihu Inc ADR holds its Distribution at $2.75. Consolidating, no directional conviction, held for 4 days.
As held on the ledger · 2026-11-06
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 4 days
Price at the screen
$2.75
Valuation
N/A trailing · 27.82 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.27
The Workings
Five Screens, Shown in Full
Does not pass. Accounts receivable
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
1.39%
Below 33%
Interest-bearing debt is just 1.4% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
4.05%
Below 33%
Cash held in interest-bearing accounts and securities is 4.0% of assets, under the one-third limit.
Pass
Receivables
71.80%
Below 49%
Money owed to the company is 71.8% of assets, above the 49% limit.
Fail
Revenue purity
2.60%
Below 5%
Only 2.6% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Zhihu's business is fine, but its receivables are about 72% of its assets, well over the ~49% line, so it does not pass on the financial screens.
Read as at 2026-11-07. It updates when the underlying figures move, and past reads are kept below.
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Today ZH does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Fair vs our fair value, as of 6 Nov 2026: it trades above our $2.66 fair value estimate, none competitive moat.
Fair value range in USD, drawn from the 2026-11-06 screen. The gold marker is the market price at the same screen. The price runs 3.4% above the base estimate.
Third-party analyst targets. The average target sits +53% from the screen price.
Reading the gap · Our more conservative model reads it as roughly fairly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; its business and earnings are exposed to China and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ZH trades on the NYSE (the company is based in China). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 20.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-10-30Markdown · changed$3.37+0.0%Entry 8
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-10-23Markup$3.37-2.3%Entry 7
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 2.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-10-02Markup · changed$3.45+8.8%Entry 6
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 8.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-09-18Distribution · changed$3.17+0.0%Entry 5
The framework has shifted from accumulation to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-08-19Accumulation · changed$3.17-1.6%Entry 4
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 1.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-07-18Markdown$3.22+0.0%Entry 3
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 20%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (7 analysts) rates it strong buy, with a mean price target of $5.
2026-07-03Markdown$3.22+0.0%Entry 2
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
2026-07-02Markdown$3.22Entry 1
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.