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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for JDcom Inc. To summarize, we found that JDcom Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 980.5%. 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 96.53% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 9.75% 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 49.2% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JD, try NSIT, ARW, WUBA, LINX, and FARO.
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