Jd.com Intrinsic Value – JD.com: Analyzing The Fundamentals Could Unlock Share Price Potential
April 18, 2023
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JD.COM ($NASDAQ:JD): JD.com is a leading e-commerce company in China that offers a wide variety of products and services to customers. The company has become a major player in the online shopping space, and its shares have been performing well in recent months.
However, an analysis of the company’s fundamentals could yield even more potential for its share price. One way to unlock this potential is through a Sum-of-the-Parts (SOTP) valuation. This valuation method looks at the individual components of JD.com’s business, such as its logistics, advertising, and retail businesses, and assigns each component a value based on its contribution to the company’s overall success. By doing this, investors can gain a better understanding of JD.com’s actual worth, which can help inform their decision whether to invest or not. For instance, investors can look at the company’s balance sheet and cash flow statements to determine if it has any hidden value or growth potential.
Additionally, they can look at JD.com’s competitive position in China to gauge how it could benefit from potential market expansion or industry consolidation. In conclusion, analyzing JD.com’s fundamentals through a Sum-of-the-Parts (SOTP) valuation could be a great way to increase the company’s share price. Additionally, assessing the company’s financials and market position could also help investors identify further opportunities to unlock its current and future potential.
Stock Price
JD.com (JD) opened at $37.9 on Monday, and closed at $38.0, up by 3.3% from its previous closing price of 36.8. With its highly diversified product offering, JD’s vast network of fulfillment centers and customer service centers have enabled it to dominate the fast-growing Chinese e-commerce market. Additionally, the company’s strategic partnerships with big names such as Walmart and Alphabet have helped expand JD’s global presence. With its strong customer base, secure logistics infrastructure and highly efficient supply chain, investors have a lot to look forward to in terms of unlocking further share price potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jd.com. More…
| Total Revenues | Net Income | Net Margin |
| 1.05M | 10.38k | 0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jd.com. More…
| Operations | Investing | Financing |
| 57.82k | -54.03k | 1.18k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jd.com. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 595.25k | 321.13k | 136.08 |
Key Ratios Snapshot
Some of the financial key ratios for Jd.com are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.9% | 35.8% | 1.5% |
| FCF Margin | ROE | ROA |
| 3.4% | 4.7% | 1.7% |
Analysis – Jd.com Intrinsic Value
GoodWhale has conducted an analysis of JD.COM’s wellbeing and has come up with a fair value of the company’s share at around $72.6. This was calculated using our proprietary Valuation Line. Currently, the JD.COM stock is traded at $38.0, which is 47.7% lower than the fair value we have determined. This suggests that JD.COM is greatly undervalued in the current market. More…
Summary
Investing in JD.com can be a lucrative opportunity for investors. Analysis of the company’s SOTP Valuation suggests that revisiting these estimates could help boost the stock price in the short term. Recent news of the company’s stock price moving up on the same day suggests that investors are taking notice of the potential. Overall, JD.com appears to be a company with strong fundamentals and an attractive valuation that offers investors a good opportunity for future growth and potential return.
