Vipshop Holdings Limited (VIPS)
Valuation Overview•Is Vipshop Holdings Limited Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
VIPS demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($17.7B) and minimal debt risk.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (12.9% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 7.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $32.5B | -2.3% | +0.9% | +0.8% | +10.2% | |
| EBITDA | $3.3B | — | +8.7% | — | — | |
| Net Income | $2.6B | -6.4% | +4.8% | — | +16.4% | |
| EPS (Diluted) | $5.12 | -1.4% | +12.9% | +10.6% | +18.2% | |
| Free Cash Flow | $0.00 | -100.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 23.1% | 23.1% | 22.0% | 22.0% |
| Operating Margin | 7.7% | 8.1% | 7.0% | 5.7% |
| Net Margin | 6.8% | 7.1% | 6.3% | 5.0% |
| FCF Margin | — | 6.6% | 5.8% | 4.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.68 | $0.68 | +0.0% | ||
| Q1'26 | $0.78 | $0.81 | +3.8% | ||
| Q4'25 | $0.43 | $0.42 | -2.3% | ||
| Q3'25 | $0.56 | $0.57 | +1.8% | ||
| Q2'25 | $0.66 | $0.61 | -7.6% | ||
| Q1'25 | $0.70 | $0.78 | +11.4% | ||
| Q4'24 | $0.32 | $0.35 | +9.4% | ||
| Q3'24 | $0.54 | $0.54 | +0.0% |
Total return is -5.2% (1Y), lagging the benchmark by -30.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -21.2% | -30.5% | — |
| 1Y | -5.2% | -30.2% | +4.2% |
| 3YCAGR | -4.5% | -23.9% | +9.0% |
| 5YCAGR | -4.7% | -17.9% | +8.1% |
| 10YCAGR | +2.8% | -10.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Vipshop Holdings Limited (VIPS) valuation, health, and returns.
Vipshop Holdings Limited is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +58.1% upside to DCF intrinsic value of $21.08)
Vipshop Holdings Limited has multiple valuation anchors: DCF Intrinsic Value: $21.08 | Peer Relative Fair Value: $199.39 | Wall Street Analyst Target: $20.55 (implying +54.2% upside). A convergence of these signals offers higher conviction.
Vipshop Holdings Limited displays fair financial health with a composite quality score of 55/100, supported by a Altman Z-Score of 1.9 (grey zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 27.0%.
Vipshop Holdings Limited does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Vipshop Holdings Limited's current growth trajectory is Decelerating. The company achieved -2.3% 1Y revenue growth and -1.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.9%.
Wall Street consensus is Buy based on 28 analysts, beating EPS expectations in 67% of recent quarters with a -1-quarter streak. The consensus price target represents a +54.2% change from current levels.
Investment risks for Vipshop Holdings Limited include: -35.5% 1-year max drawdown. Volatility risk is characterized by a beta of 0.86x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.