Jd.com Intrinsic Value Calculation – JD.com: Despite Poor Performance in 2023, a Good Investment Opportunity
January 4, 2024
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JD.COM ($NASDAQ:JD): JD.com is one of the largest Chinese e-commerce companies, and its stock has consistently underperformed in 2023. Despite this lackluster performance, investing in the company could be a worthwhile endeavor. The company is well-positioned to capitalize on the growth of e-commerce in China, as well as the increasing demand for digital services in the country. JD.com offers a wide range of products and services, from groceries to home appliances, with an extensive network of warehouses and delivery services. They also have a strong focus on technology, including autonomous delivery robots, AI-based customer service solutions, and an extensive online-to-offline retail platform.
Additionally, JD.com has been making moves to expand beyond its Chinese market to become a global leader in e-commerce. It has already opened stores in the United States, Australia, and other countries, and is planning further expansion into Europe and Asia. This could lead to greater profits for investors over the long run, as the company expands its customer base and grows its revenues. In addition to these long-term benefits, investing in JD.com at its current level of stock performance has the potential to provide immediate gains. The stock is currently trading far below its historical high of $54 per share, meaning that investors who purchase at current levels could see significant profits if the stock were to regain its former value. Overall, investing in JD.com despite its poor performance in 2023 could be a worthwhile endeavor. The company has strong potential for growth domestically and internationally, as well as short-term opportunities to capitalize on its current stock valuation.
Market Price
On Tuesday, the JD.com stock opened at $28.0 and closed at $27.2, representing a drop of 5.8% from its prior closing price of $28.9. Despite this, analysts believe that JD.com’s long-term outlook remains positive and that the company has a promising future ahead. Investors who hold on to their shares and remain patient could potentially see good rewards down the road. As an e-commerce leader in China, JD.com has a well-established presence in the market and has been able to stay ahead of its competition.
Additionally, the company boasts a range of innovative services which have enabled it to remain competitive and relevant in the ever-evolving digital economy. Despite its recent poor performance, JD.com continues to offer investors an attractive opportunity for long-term returns. With its established presence in the market, innovative services, and well-developed strategic partnerships, investors should not overlook this potential investment opportunity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jd.com. JD.com_Despite_Poor_Performance_in_2023_a_Good_Investment_Opportunity”>More…
| Total Revenues | Net Income | Net Margin |
| 1.07M | 23.81k | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jd.com. JD.com_Despite_Poor_Performance_in_2023_a_Good_Investment_Opportunity”>More…
| Operations | Investing | Financing |
| 58.39k | -14.38k | -9.3k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jd.com. JD.com_Despite_Poor_Performance_in_2023_a_Good_Investment_Opportunity”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 617.39k | 321.11k | 146.23 |
Key Ratios Snapshot
Some of the financial key ratios for Jd.com are shown below. JD.com_Despite_Poor_Performance_in_2023_a_Good_Investment_Opportunity”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.8% | 31.6% | 3.2% |
| FCF Margin | ROE | ROA |
| 3.5% | 9.6% | 3.5% |
Analysis – Jd.com Intrinsic Value Calculation
GoodWhale has conducted an in-depth analysis of JD.COM‘s wellbeing and concluded that the fair value of its share is around $58.8, as calculated by our proprietary Valuation Line. Currently, the stock is being traded at $27.2, which is a staggering 53.8% lower than its fair value. This presents a great opportunity to investors who are looking to purchase shares of JD.COM at a discounted price. We believe that the company has strong fundamentals and that there will be significant upside potential in the near future. Therefore, we recommend investors take advantage of the current undervaluation to acquire JD.COM shares at a low price and potentially benefit from a substantial return on investment over time. More…
Summary
JD.com is one of the worst performing stocks in 2023, having seen its share price move down in the same day. Despite this, many analysts believe that JD.com is still a good long-term investment. Additionally, it has a diversified portfolio of businesses, including logistics, financial services, and even AI technology. All in all, the pros of investing in JD.com outweigh the cons and investors should consider it as part of their portfolio.
