JD.com, Inc.
Thesis
JD.com is currently undervalued, trading at only 5x owner’s earnings while its core retail and advertising business deserves to trade at higher multiples. The company has a strong logistics network and is positioned to capture more advertising revenue, which is expected to grow significantly. The target price of $80 reflects a 27% IRR based on a sum-of-the-parts valuation that separates out non-core segments.
Did it work?
While JD.com has appreciated by 32.8% since the pitch, the time elapsed is unknown, making it difficult to assess whether this return aligns with the thesis's expected performance over a specific horizon. The thesis highlights undervaluation and growth potential, but without knowing the timeframe, we cannot definitively conclude if the thesis has fully played out.
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