VIPS - Vipshop: Undervalued Based On Fundamentals

May, 20 2022 03:32 AM Vipshop Holdings Limited American Depositary Shares each representing two

Vipshop is one of China’s leading online discount retailer. The Company offers popular branded products such as apparel, shoes, accessories and cosmetics products at discount prices.
Vipshop's financials look superb and the valuation ridiculously cheap. The company is down more than 88% from all-time highs, and I believe the stock may have found a bottom.
Analysts expect VIPS to continue growing, estimating 2023, 2024, and 2025 revenues at $18.4 billion, $19.5 billion and $20.5 billion respectively. Consensus implies a CAGR of greater than 5%.
I value VIPS based on a residual earnings framework, and my calculation implies that VIPS is currently 45% undervalued, with a fair base-case target price of $12.59. Buy.

For further details see:

Company Name:	Vipshop Holdings Limited American Depositary Shares each representing two
Stock Symbol:	VIPS
Market:	NYSE
Website:	vip.com