- 111, Inc. is a mobile healthcare platform, which sells drugs and healthcare services.
- The company looks undervalued especially after the recent unjustified sell-off in its shares triggered by China's continued regulatory crackdown on tech stocks.
- 111, Inc. though, does not represent a monopoly; the company offers excellent help for patients or old adults who live far from pharmacies.
- With a WACC of 9%, terminal FCF of CNY1.400 billion, and an exit multiple of 17x FCF, I arrive at a total enterprise value of CNY4 billion.
- I used an ADS count of 82 million, which implied a valuation of $7.65 per ADS, or 50% upside to current share price.
For further details see:
111, Inc.: Undervalued After Recent Unjustified Share Price Collapse; 50% Upside