Fangdd Story

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As many of us are excited about real estate space, it is fair to outline Fangdd Network Group. We will analyze why Fangdd Network investors may still consider a stake in the business. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Fangdd to give you a better outlook on taking a position in this stock.

Published over a month ago

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Should I rely on Fangdd Network management in January 2021?

Fangdd Network has 571.76 M in debt with debt to equity (D/E) ratio of 0.29, which may show that Fangdd Network is not taking advantage of profits from borrowing. This firm has a current ratio of 1.35, which is typical for the industry and considered as normal. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Fangdd Network has an asset utilization ratio of 75.41 percent. This suggests that the company is making $0.75 for each dollar of assets. An increasing asset utilization means that Fangdd Network Group is more efficient with each dollar of assets it utilizes for everyday operations.

We determine the current worth of Fangdd Network Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fangdd Network Group based exclusively on its fundamental and basic technical indicators. By analyzing Fangdd Network's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fangdd Network's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fangdd Network. We calculate exposure to Fangdd Network's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fangdd Network's related companies.

Fangdd Network Group Investment Alerts

Fangdd investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Fangdd Network Group performance across your portfolios.Please check all investment alerts for Fangdd

Fangdd Network Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Fangdd value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fangdd Network competition to find correlations between indicators driving the intrinsic value of Fangdd.

How Fangdd utilizes its cash?

To perform a cash flow analysis of Fangdd Network, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fangdd Network is receiving and how much cash it distributes out in a given period. The Fangdd Network cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Fangdd Network Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 147.05 Million

Is Fangdd Network valued adequately by the market?

The latest price rise of Fangdd Network Group could raise concerns from institutional investors as the firm it trading at a share price of 10.10 on 9,611,700 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.5. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Fangdd Network partners.

Margins Breakdown

Fangdd profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Fangdd Network itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Fangdd Network profit margins.

	EBITDA Margin	(0.15)
	Gross Margin	0.23
	Profit Margin	(0.38)

Fangdd Network Invested Capital is increasing over the last 5 years. Fangdd Network Invested Capital is quite stable at the moment.

Will Fangdd Network latest rise continue?

Sortino ratio is down to 0.14. It may entail a possible volatility slide. Fangdd Network Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Fangdd Network Group independently to ensure intended market timing strategies are aligned with expectations about Fangdd Network volatility.

The Current Takeaway on Fangdd Network Investment

Whereas some other firms under the real estate services industry are still a bit expensive, Fangdd Network may offer a potential longer-term growth to institutional investors. The bottom line, as of the 6th of December 2020, we believe that Fangdd Network is currently overvalued with above average chance of distress in the next two years. Our overall 30 days 'Buy-Sell' recommendation on the company is Strong Sell.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fangdd Network Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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