58.com Inc. American Depositary Shares, each representing 2 Class A Ordinary Shares (WUBA) Company Bio
58.com operates an online marketplace for local merchants and consumers in China. Its online marketplace enables local merchants and consumers to connect, share information, and conduct business. The company was founded in 2005 and is based in Beijing, China.
WUBA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WUBA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that 58com Inc ranked in the 86th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 902.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WUBA, they are:
The company's balance sheet shows it gets 100% of its capital from equity, and 0% of its capital from debt. Its equity weight surpasses that of 94.06% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 2.93% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
58com Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -165.04. This coverage rate is greater than that of only 1.09% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 WUBA, try CLS, TRT, TKAT, TECD, and ETSY.
Halper Sadeh LLP, a global investor rights law firm, announces it is investigating whether the following mergers are fair to shareholders. Halper Sadeh LLP may seek increased consideration, additional disclosures and information concerning the proposed transaction, or other relief and benefits on behalf of shareholders:
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of 58.com Inc. (NYSE: WUBA) to Quantum Bloom Group Ltd. Under the terms of the proposed transaction, shareholders of 58.com will receive only $28.00 in cash for each class A or B share and $56.00 in cash for each American depositary share ("ADS") of 58.com that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.