Essential Information for BEKE Investors

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
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.