FMP
May 23, 2024 2:29 PM - Davit Kirakosyan
Benchmark analysts downgraded Vipshop Holdings (NYSE:VIPS) from Buy to Hold following the company’s reported disappointing first-quarter results and subdued growth outlook for fiscal year 2024.
The guidance for second-quarter revenue, which is expected to decrease by 0-5% year-over-year, and the flat revenue forecast for fiscal 2024 indicate a loss of market share in Vipshop's standardized products segment, which makes up about 25% of its total GMV. While the core apparel category remains stable, it is likely to face increased competition as key competitors ramp up their investments.
The current stock price, implying a 7.1x FY24 P/E ratio, is seen as fair for a company with no growth. This is in contrast to platform peers who are experiencing mid/high single-digit growth and have an improving outlook, yet trade at higher multiples. Despite the revenue shortfall, the analysts acknowledged the company's stable margin outlook and plans to return 75% of net profit to shareholders. However, the stock lacks fundamental catalysts for further growth.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...