<div id="readability-page-1"><div><ul> <li>If you are looking at JD.com and wondering whether the current share price reflects its true worth, this article walks through what the numbers are saying about value today.</li> <li>JD.com last closed at US$27.23, with returns of 0.3% over 7 days, an 8.7% decline over 30 days, a 7.8% decline year to date and a 28.7% decline over the past year, alongside a 34.7% decline over 3 years and a 69.5% decline over 5 years.</li> <li>Recent headlines around JD.com have focused on its position within Chinese e commerce and ongoing competition with other major online retailers. This has kept attention on how the business is being valued by the market, and investors are weighing this context against the share price moves you see in the recent return figures.</li> <li>On our valuation checks, JD.com scores 5 out of 6. This sets up a closer look at how methods like discounted cash flow and market multiples compare, and why there may be an even better way to think about value that we will come back to at the end of the article.</li> </ul> <p>Find out why JD.com's -28.7% return over the last year is lagging behind its peers.</p> <h3>Approach 1: JD.com Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow model projects the cash JD.com might generate in the future and then discounts those cash flows back to today to estimate what the whole business could be worth now.</p> <p>For JD.com, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is a loss of CN¥232.8 million, so the near term picture in cash terms is soft. Looking ahead, analysts and extrapolated estimates in the source model point to free cash flow in the tens of billions of CN¥, with CN¥47.6b indicated for 2028 and projected figures ranging around CN¥41.4b to CN¥54.5b across the next decade.</p> <p>When those projected cash flows are discounted back, the DCF output in that model suggests an intrinsic value of US$51.72 per share, compared with the recent share price of US$27.23. That gap translates to an implied 47.4% discount to the DCF estimate.</p> <p><strong>Result: UNDERVALUED (based on this DCF model)</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests JD.com is undervalued by 47.4%. Track this in your watchlist or portfolio, or discover 56 more high quality undervalued stocks.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/dcf/query-ZGF0ZT0yMDI2LTAyLTI0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/dcf/query-ZGF0ZT0yMDI2LTAyLTI0"/><figcaption>JD Discounted Cash Flow as at Feb 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for JD.com.</p> <h3>Approach 2: JD.com Price vs Earnings</h3> <p>For profitable companies, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings, which is why it is the preferred multiple here.</p> <p>What counts as a normal or fair P/E usually reflects how the market views a company’s growth prospects and risks, with higher expected growth or lower perceived risk often going hand in hand with a higher multiple, and the opposite also holding true.</p> <p>JD.com is currently trading on a P/E of 8.29x. That is well below the Multiline Retail industry average P/E of 19.96x and also below the peer group average of 42.44x. Simply Wall St’s Fair Ratio for JD.com is 20.62x, which is its proprietary estimate of what the P/E could be given factors such as the company’s earnings growth profile, industry, profit margins, market cap and specific risks.</p> <p>This Fair Ratio is more tailored than a straight comparison with peers or the industry because it adjusts for JD.com’s own characteristics instead of assuming it should trade like the average retailer. Comparing the Fair Ratio of 20.62x with the current P/E of 8.29x suggests the shares are trading below this modeled fair value range.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAyLTI0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAyLTI0"/><figcaption>NasdaqGS:JD P/E Ratio as at Feb 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.</p> <h3>Upgrade Your Decision Making: Choose your JD.com Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your story about JD.com linked directly to a forecast and a fair value. On Simply Wall St’s Community page you can pick or create a view where, for example, a highly optimistic JD.com Narrative might assume revenue growth of about 12% with a fair value of US$82.68 per share, while a more cautious Narrative might assume revenue growth closer to 5% with a fair value of US$28.36. You can then compare each Fair Value with the current share price, see in real time how new news or earnings update these figures, and decide for yourself how that story lines up with the numbers.</p> <p>Do you think there's more to the story for JD.com? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/quote-price/query-ZGF0ZT0yMDI2LTAyLTI0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30f94cd0-ba63-4837-8885-37b965a59671/chart/quote-price/query-ZGF0ZT0yMDI2LTAyLTI0"/><figcaption>NasdaqGS:JD 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

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<p>JD.com is currently trading at US$27.23, reflecting significant declines over various time frames. A Discounted Cash Flow (DCF) analysis suggests it is undervalued by 47.4%, with an intrinsic value of US$51.72 per share. Additionally, its P/E ratio of 8.29x is below industry averages, indicating further undervaluation. Analysts project future cash flows in the tens of billions of CN¥, suggesting potential growth. Different narratives about JD.com's future performance could lead to varying fair value estimates, ranging from US$28.36 to US$82.68 per share.</p>

- JD.com closed at US$27.23, reflecting significant declines in various timeframes, raising questions about its valuation amidst competition in Chinese e-commerce.  
- A Discounted Cash Flow analysis suggests an intrinsic value of US$51.72 per share, indicating the stock is undervalued by 47.4%.  
- Additionally, JD.com’s P/E ratio of 8.29x is below industry averages, reinforcing the perception of undervaluation based on market expectations and growth prospects.

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Is JDcom (JD) Now Pricing In Too Much Pessimism After Prolonged Share Price Weakness