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:
Below please find a table outlining a discounted cash flow forecast for JD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that JDcom Inc ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for JD, they are:
The company has produced more trailing twelve month cash flow than 97.26% of its sector Technology.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 8.43% of the free cash flow producing stocks we're observing.
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 49.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WSTG, TME, MTSI, CTG, and GLGI can be thought of as valuation peers to JD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
JD.com (JD) to spin off its subsidiary JD Health and list it in Hong Kong to raise at least $1B and up to $3BJD Health provides a wide range of services from drug delivery to online medical consultation.In August, it raised more than $830M from Hillhouse Capital in its series...
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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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