Research On The Profitability And Evaluation Of Weipinhui (NYSE:VIPS)

With the development of the mobile Internet and the boost in the user of Chinese Internet,online shopping could be merely called as a trendy thing in China but more of a necessary lifestyle.In the vast number of Chinese E-commerce companies,VIPS is the outstanding one not only because its unique way of selling goods,namely outlets plus flash sale,but its excellence in the profitability as well.As the first Chinese companies that went to public in the US stock market,VIPS also has drawn so much attention from investors.This thesis will start by analyzing the profitability of this company and investigate the progress and history of this company as well as the future direction.At the same time,the precise evaluation of the company could be also treated as a focus in the whole thesis.By comparing different modules of company evaluation,the thesis will attempt to indicate a proper theory to assess the value of Ecommerce companies.In the end,the conclusion is VIPS’s value is highly underestimated and intentionally would shed certain enlightenment to the investors.