Vipshop Holdings Ltd ADR

VIPS: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$69.30	Pngh	Kbsgfsd

Initiate on No-Moat Vipshop With Fair Value Estimate of USD 20.80; Shares Undervalued

Chelsey Tam

Aug 2, 2024

We initiate on Vipshop with a fair value estimate of USD 20.80 per ADS, implying 2024 P/E of 6.8 times and free cash flow yield of 3.4%. We assign Vipshop a no moat rating as intensifying competition could erode its returns on invested capital in the coming decade. However, we think the shares are cheap currently. Thirty-seven percent of our Vipshop equity valuation comes from cash and cash equivalents.

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