Vipshop Holdings Valuation
| VIPS Stock | USD 15.15 0.18 1.17% |
At this time, the company appears to be undervalued. Vipshop Holdings has a current Real Value of $17.43 per share. The regular price of the company is $15.15. Our model measures the value of Vipshop Holdings from inspecting the company fundamentals such as Return On Equity of 0.23, shares outstanding of 542.3 M, and Operating Margin of 0.11 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Vipshop Holdings' valuation include:
Price Book 1.7246 | Enterprise Value -21.9 B | Enterprise Value Ebitda 0.5325 | Price Sales 0.0781 | Forward PE 8.0645 |
Undervalued
Today
Please note that Vipshop Holdings' price fluctuation is not too volatile at this time. Calculation of the real value of Vipshop Holdings is based on 3 months time horizon. Increasing Vipshop Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Vipshop Holdings Limited is useful when determining the fair value of the Vipshop stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Vipshop Holdings. Since Vipshop Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vipshop Stock. However, Vipshop Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 15.15 | Real 17.43 | Target 18.72 | Hype 15.2 |
The real value of Vipshop Stock, also known as its intrinsic value, is the underlying worth of Vipshop Holdings Company, which is reflected in its stock price. It is based on Vipshop Holdings' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Vipshop Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Vipshop Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Vipshop Holdings Limited helps investors to forecast how Vipshop stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Vipshop Holdings more accurately as focusing exclusively on Vipshop Holdings' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Vipshop Holdings' intrinsic value based on its ongoing forecasts of Vipshop Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Vipshop Holdings' closest peers. When choosing an evaluation method for Vipshop Holdings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Vipshop Holdings Investments |
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Vipshop Valuation Drivers Correlation
Many accounts on the financial statements of Vipshop Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Vipshop's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Vipshop
Click cells to compare fundamentals
Vipshop Valuation Trend
Knowing Vipshop Holdings' actual value is paramount for traders to make sound investment determinations. Vipshop Holdings' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Vipshop Holdings' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Vipshop Holdings' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Vipshop Market Cap
Vipshop Holdings Limited is rated first in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 13.96 Billion. Vipshop Holdings totals roughly 8.22 Billion in market capitalization claiming about 59% of stocks in Consumer Discretionary industry.Vipshop Holdings Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Vipshop Holdings's current stock value. Our valuation model uses many indicators to compare Vipshop Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vipshop Holdings competition to find correlations between indicators driving Vipshop Holdings's intrinsic value. More Info.Vipshop Holdings Limited is rated below average in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.24 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Vipshop Holdings Limited is roughly 4.24 . Price To Book Ratio is likely to gain to 1.88 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Vipshop Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vipshop Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vipshop Holdings' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Vipshop Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Vipshop Holdings and how it compares across the competition.
About Vipshop Holdings Valuation
The stock valuation mechanism determines the current worth of Vipshop Holdings Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Vipshop Holdings Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vipshop Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Vipshop Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Vipshop Holdings'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 Vipshop Holdings. We calculate exposure to Vipshop Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Vipshop Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 24.9 B | 26.1 B | |
| Pretax Profit Margin | 0.07 | 0.07 | |
| Operating Profit Margin | 0.05 | 0.06 | |
| Net Profit Margin | 0.06 | 0.06 | |
| Gross Profit Margin | 0.19 | 0.16 |
8 Steps to conduct Vipshop Holdings' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Vipshop Holdings' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Vipshop Holdings' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Vipshop Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Vipshop Holdings' revenue streams: Identify Vipshop Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Vipshop Holdings' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Vipshop Holdings' growth potential: Evaluate Vipshop Holdings' management, business model, and growth potential.
- Determine Vipshop Holdings' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Vipshop Holdings' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Vipshop Holdings represents a small ownership stake in the entity. As a stockholder of Vipshop, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Vipshop Holdings Dividends Analysis For Valuation
Please note that Vipshop Holdings has scaled down on payment of dividends at this time. Retained Earnings is likely to gain to about 34.7 B in 2024. Earnings Yield is likely to gain to 0.09 in 2024
There are various types of dividends Vipshop Holdings can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Vipshop shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Vipshop Holdings Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Vipshop pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Vipshop Holdings by the value of the dividends paid out.
Vipshop Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Vipshop Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 693.7 M | |
| Quarterly Earnings Growth Y O Y | 0.461 | |
| Forward Price Earnings | 8.0645 |
Vipshop Holdings Current Valuation Indicators
Valuation refers to the process of determining the present value of Vipshop Holdings Limited and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Vipshop we look at many different elements of the entity such as Vipshop's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Vipshop Holdings' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Vipshop Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Vipshop Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Vipshop Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Vipshop Holdings' worth.When determining whether Vipshop Holdings is a strong investment it is important to analyze Vipshop Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vipshop Holdings' future performance. For an informed investment choice regarding Vipshop Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vipshop Holdings Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Vipshop Stock analysis
When running Vipshop Holdings' price analysis, check to measure Vipshop Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vipshop Holdings is operating at the current time. Most of Vipshop Holdings' value examination focuses on studying past and present price action to predict the probability of Vipshop Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vipshop Holdings' price. Additionally, you may evaluate how the addition of Vipshop Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Vipshop Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vipshop Holdings. If investors know Vipshop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vipshop Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.461 | Dividend Share 3.049 | Earnings Share 1.99 | Revenue Per Share 203.903 | Quarterly Revenue Growth 0.092 |
The market value of Vipshop Holdings is measured differently than its book value, which is the value of Vipshop that is recorded on the company's balance sheet. Investors also form their own opinion of Vipshop Holdings' value that differs from its market value or its book value, called intrinsic value, which is Vipshop Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vipshop Holdings' market value can be influenced by many factors that don't directly affect Vipshop Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vipshop Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vipshop Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vipshop Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.