JD.com operates as an online direct sales company in China. It primarily offers electronics and home appliances products; and general merchandise products, including audio and video products, and books. The company sells its products directly to customers through its Website JD.com and mobile applications. The company was founded in 2007 and is based in Beijing, China.
JD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for JDcom Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that JDcom Inc ranked in the 85th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1015.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for JDcom Inc ended up being:
As a business, JD is generating more cash flow than 96.63% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 8.6% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
JD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Bill Gunderson on Seeking Alpha | September 23, 2020
Chinese e-commerce giant JD.com has bought a stake in the century-old supply chain manager Li & Fung, in a strategic partnership that marries 21st century digital technology with one of the world's largest logistics and supply chain networks.JD.com has subscribed for US$100 million worth of Li & Fung's newly issued shares at HK$1.25 each, the Hong Kong-based supply chain manager said in a statement, adding that the Fung family will retain control of 60 per cent of the company's voting rights. As part of the agreement, Li & Fung will seek to increase its business in China by partnering with JD.com on private-label initiatives for the Chinese domestic market, the company said.The investment also will help accelerate the development of the 114-year-old company's end-to-end ...
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