It's been a great afternoon session for KE investors, who saw their shares rise 6.9% to a price of $14.76 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
KE Is Reasonably Valued:
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 12.38 and an average price to book (P/B) ratio of 1.58. In contrast, KE has a trailing 12 month P/E ratio of 23.1 and a P/B ratio of 0.24.
KE's PEG ratio is 12.21, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Strong Revenue Growth With No Capital Eexpenditures:
2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|
Revenue (M) | $362 | $386 | $10,802 | $12,672 | $8,796 |
Interest Income (M) | $44 | $181 | $25 | $56 | $108 |
Diluted Shares (M) | 1,363 | 1,378 | 2,267 | 3,549 | 3,569 |