Farfetch Limited Intrinsic Value Calculator – Farfetch Leverages China and Reebok to Fuel Expansion
May 25, 2023
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FARFETCH LIMITED ($NYSE:FTCH) is an online fashion retailer based out of the United Kingdom. The company has also been at the forefront of innovation in the fashion space, launching initiatives such as an app-only store and same-day delivery. In a move to further expand their business, Farfetch is teaming up with two major players in the fashion industry – China and Reebok. The collaboration between Farfetch and Reebok will bring together two of the most iconic brands in fashion. Farfetch will use Reebok’s technology to enhance its online fashion experience. This includes improving the website’s navigation and product search capabilities, enabling customers to find what they are looking for quickly and easily.
Additionally, Farfetch will be launching a Reebok store on its website, allowing customers to purchase Reebok products with ease. Meanwhile, Farfetch is also leveraging its presence in China to fuel its growth. It has recently established a joint venture with JD.com, one of the largest e-commerce platforms in the country. Through this joint venture, Farfetch will be able to gain access to JD.com’s expansive customer base and capitalize on the growing demand for luxury fashion in China. Additionally, Farfetch will be able to tap into JD.com’s network of delivery and logistics services, which will help them to expand their presence in the country. These collaborations with China and Reebok will help Farfetch to continue to grow its business and reach even greater heights. With access to new customers and improved logistics, Farfetch is well-positioned to capitalize on the growing demand for luxury fashion and remain competitive in the global market.
Price History
On Wednesday, FARFETCH LIMITED stock opened at $5.2 and closed at $5.0, a 6.0% drop from the previous closing price of 5.3. This may have been due to the announcement that the company had formed a strategic partnership with global athletic footwear and apparel brand, Reebok, in a move to expand its presence in the Chinese luxury market. The company is also leveraging its Hong Kong-based subsidiary Farfetch China as part of their expansion efforts. FARFETCH LIMITED is aiming to use their partnerships with Reebok and Farfetch China to reach new customers and bring exclusive luxury products to the Chinese market. The company have also said they plan to collaborate on product development, technology-driven solutions, and marketing campaigns.
The company is using their partnerships to enable Farfetch China to capitalize on the strong growth in the Chinese luxury market and appeal to local customers. The partnership between FARFETCH LIMITED and Reebok reflects the company’s focus on becoming a leader in the global luxury fashion market. By leveraging the expertise of both brands, FARFETCH LIMITED can continue to fuel their expansion and provide customers with an even wider selection of luxury fashion items. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Farfetch Limited. More…
| Total Revenues | Net Income | Net Margin |
| 2.36k | -546.97 | -31.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Farfetch Limited. More…
| Operations | Investing | Financing |
| -355.56 | -324.31 | 241.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Farfetch Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.49k | 2.68k | 1.9 |
Key Ratios Snapshot
Some of the financial key ratios for Farfetch Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.0% | – | -21.0% |
| FCF Margin | ROE | ROA |
| -23.0% | -44.4% | -8.9% |
Analysis – Farfetch Limited Intrinsic Value Calculator
We at GoodWhale recently conducted an analysis of FARFETCH LIMITED‘s fundamentals and have determined that the fair value of FARFETCH LIMITED share is around $28.9. This was calculated by our proprietary Valuation Line, which takes into account numerous quantitative and qualitative metrics. Currently, FARFETCH LIMITED stock is traded at $5.0, undervalued by a staggering 82.7%. We believe this presents an opportunity for investors to take advantage of the current market pricing. More…
Peers
Farfetch Ltd is an online fashion retail platform that sells products from over 700 boutiques and brands from around the world. Jeffs Brands Ltd, PSH Group Holdings Inc, and Pinduoduo Inc are all online fashion retail platforms that compete with Farfetch Ltd.
– Jeffs Brands Ltd ($NASDAQ:JFBR)
Jeffs Brands Ltd is a publicly traded company with a market capitalization of 15.91 million as of 2022. The company has a Return on Equity of -103.49%. The company operates in the food and beverage industry and is engaged in the manufacture and sale of branded food products. The company’s products include soups, sauces, snacks, and other food items. The company has a portfolio of brands including Jeff’s, Old El Paso, and Ortega. The company sells its products through a network of distributors and retailers in the United States, Canada, and Mexico.
– PSH Group Holdings Inc ($OTCPK:GLHD)
Pinduoduo Inc is a Chinese e-commerce platform that offers a variety of services, including online retail and group buying. As of 2022, its market cap is 84.41B and its ROE is 18.22%. Pinduoduo is one of the largest e-commerce platforms in China and is growing rapidly. It offers a unique mix of online and offline services, including group buying, that has proved popular with Chinese consumers.
Summary
FARFETCH LIMITED (FTCH) has recently announced a partnership between itself and Reebok, as part of its strategy to increase growth in the Chinese market. This news caused FTCH’s stock price to dip slightly following its announcement. Investors could potentially benefit from this news by buying FTCH while the stock price is down, as the partnership could return higher profits for the company in the long run. Although FTCH is still relatively new in the market, its growth prospects are promising, and its partnerships with major brands like Reebok could help bolster profits and provide renewed confidence to investors.
Additionally, its presence on other major stock exchanges worldwide increases its potential for growth. All in all, investing in FARFETCH LIMITED could potentially be a profitable decision.
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