One-glance verdict
Undervalued
$81.27 our estimate vs market $12.70
Wall Street consensus: $16.11 (-80.2% lower than our fair-value estimate)
84% below our estimate, below the bear case
Fundamentals snapshot
Vipshop Holdings Limited
VIPS · NYQ · Consumer Cyclical · Internet Retail
Current price
$12.70
52-week range
$12.02 - $20.49
Market cap
$6.04B
Balance sheet
Healthy
88.64x Strong cushion
Net cash $3.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 35.2% last year.
- Reward Returns 23.5% on equity, ahead of 83% of its peers.
- Risk Stock trades 255.8% above its 5-year average P/E.
- Risk Forward P/E (5.0x) is higher than trailing (4.3x) - earnings are expected to drop.
What this company does
Vipshop Holdings Limited
Vipshop Holdings Limited sells a wide variety of branded clothing, shoes, cosmetics, and home goods online and in some physical stores in China. The money they make comes from selling these products, and understanding how much profit they keep from each sale, called their margins (the percent of each sales dollar left after day-to-day business costs), helps us see how well they are managing their business. This business model matters because it shows how effectively they are reaching Chinese consumers with their product offerings.
How the company got here
Vipshop Holdings Limited was founded in December 2008, launching its online platform Vipshop.com. The company quickly established itself as an online discount retailer, focusing on offering branded products at lower prices than traditional retail. It went public on the New York Stock Exchange in March 2012, a significant milestone that provided capital for expansion. Over the years, Vipshop has grown by building relationships with thousands of domestic and international brands, becoming a major player in China's e-commerce landscape. The company has also expanded its operations to include offline retail and financial services.
What it actually does
Vipshop operates as an online discount retailer, primarily in China, selling a wide variety of branded products. Think of it as a digital outlet store where you can find clothing, shoes, cosmetics, home goods, and more from well-known brands, often at prices significantly lower than the original retail price. They achieve this through a model that often involves flash sales, where specific items are offered at a discount for a limited time. The company manages its own warehousing and logistics to ensure products reach customers efficiently.
Vip.com
This is Vipshop's main online retail platform, where the majority of its business takes place. Here, customers can find a vast selection of branded products, including apparel for women, men, and children, as well as beauty items, accessories, and home goods. The platform is known for its 'flash sale' model, offering these branded items at discounted prices for a limited duration. This segment is the core revenue generator for Vipshop, making up the largest portion of its overall sales.
Shan Shan Outlets
This segment represents Vipshop's foray into offline retail, specifically through outlet stores. These physical locations allow customers to shop for discounted branded merchandise in person, complementing the online experience. While the online platform is the primary focus, the Shan Shan Outlets provide an additional channel to reach consumers and move inventory. This business line helps Vipshop cater to a broader range of customer preferences and shopping habits.
Others
Under the 'Others' segment, Vipshop engages in several other business activities, most notably internet finance. This includes offering services like consumer financing, where customers can get loans to make purchases on Vipshop's platforms, and supplier financing, which helps brands manage their cash flow. They also offer microcredit services. This diversification aims to create additional revenue streams and enhance the overall customer and partner experience on their platforms.
What management is betting on now
Vipshop's management is focused on strengthening its position as a leading online discount retailer by continuing to offer attractive deals on branded products. They are also working to enhance customer loyalty, particularly through programs like their 'Super VIP' membership, which has shown resilience in spending. The company is also investing in technology and data insights to better understand customer preferences and personalize recommendations. Furthermore, management aims to improve operational efficiency and profitability while exploring strategic partnerships to expand their reach and offerings.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$877.58M
FY2025 Q4
$781.98M
Revenue
$15.15B
Net income
$1.04B
Diluted EPS
10.12
Operating cash flow
$1.07B
Free cash flow
$781.98M
Fetching…
Sources
Revenue
—
Net income
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Diluted EPS
9.83
Operating cash flow
$1.25B
Free cash flow
$877.58M
Fetching…
Sources
Is it cheap or expensive?
Fair value $81.27 vs current price $12.70
Wall Street consensus is the average analyst price target: $16.11 (-80.2% lower than our fair-value estimate).
Our most-likely fair value is $81.27 a share — about 539.9% above today's price of $12.70, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.2B - more cash than debt. Interest coverage 88.6x.
Net debt
$-3.20B
Interest coverage
88.64x
Vipshop Holdings Limited's profit covers its interest bill about 88.6 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
VIPS
BASELINE
Vipshop Holdings Limited
Total debt $1.74B Interest coverage 88.64x This is the baseline the peer rows are being compared against.
Total debt $15.82B Interest coverage 1.32x -99% vs VIPS Carries about 67.3x less debt cushion than VIPS.
Total debt $40.05B Interest coverage 6.09x -93% vs VIPS Carries about 14.5x less debt cushion than VIPS.
Total debt $1.99B Interest coverage 7.32x -92% vs VIPS Carries about 12.1x less debt cushion than VIPS.
Total debt $5.63B Interest coverage 5.50x -94% vs VIPS Carries about 16.1x less debt cushion than VIPS.
What you should know
The case for and against VIPS
3 Rewards
3 Risks
Rewards
-
Revenue grew 35.2% last year.
-
Returns 23.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 255.8% above its 5-year average P/E.
-
Forward P/E (5.0x) is higher than trailing (4.3x) - earnings are expected to drop.
-
Insider ownership is only 0.5% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
4.28x
Forward P/E
5.04x
P/B
1.04x
P/S
0.06x
EV/EBITDA
-1.14x
PEG ratio
0.79x
Profitability
How much profit each dollar creates
Gross margin
23.4%
Operating margin
6.2%
Net margin
9.8%
ROE
23.5%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
1.28x
Quick ratio
1.14x
Total debt
$1.74B
Total cash
$4.94B
Growth
How the business has been compounding
Revenue TTM
$40.71B
Revenue 5Y CAGR
41.5%
EPS TTM
2.97
EPS 5Y CAGR
12.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.87B
Free CF TTM
$781.98M
FCF margin
1.9%
Dividend
Shareholder payout
Yield
4.9%
Payout ratio
21.1%
Last ex-div date
2026-04-10