- Autohome is China’s leading online platform for automobiles.
- Autohome has managed to build a strong ecosystem based on network effects, with more than 100 million registered users and about >80% car dealer penetration in China.
- Speculators might find significant value in taking a long position, if the company can either 1) find growth 2) sustain profitability 3) or distribute net-cash to shareholders.
- In this article, I value the stock based on a residual earnings framework and calculate a base-case target price of $45.24/share.
For further details see:
Autohome: Fundamentals Indicate 30% Upside