- An initial DCF valuation reveals that it is slightly undervalued.
- Vipshop Holdings has a unique business model given its first mover advantage in the discount retailing industry, and is likely to benefit from the e-commerce boom in China.
- However, its move into offline retailing may incur significant opportunity costs, which may result in less than desirable growth compared to its peers.
- Therefore, more needs to be done to translate their unique business into market share and catalyze customer acquisition.
For further details see:
Vipshop Holdings: Undervalued Player In Chinese E-Commerce, But Unlikely To Outcompete Its Peers