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 82th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of JDcom Inc, consider:
As a business, JD is generating more cash flow than 97.26% 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 8.82% 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 3%; for context, that number is higher than 50.3% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of JDcom Inc? See QRTEA, FEYE, ECOM, SNCR, and EGAN.
The year 2020 was kind to e-commerce stocks, and JD.com (NASDAQ: JD) was no exception. China's biggest online direct seller finished the year with its stock price up 150%, as revenue and profits jumped and the company capitalized on opportunities in areas like groceries, pharmacy, and telehealth. After that strong run, is JD poised for more gains?
Shares of JD.com (NASDAQ: JD) were moving higher today after the Chinese e-commerce company got a bullish note from Bernstein. Bernstein analyst Robin Zhu initiated coverage this morning on JD.com with an outperform rating and a price target of $120, representing 26% upside from the closing price on Jan. 22. Zhu saw a continuation in the market share shift from offline to online retail, noting that JD and other Chinese internet companies have strong access to capital, large troves of data, and impressive track records of entering new markets, including logistics and telehealth.