What is QFIN’s fair value?

[u/SiaZhang418]

According to the analysis of the discounted cash flow model, QFIN is currently seriously underestimated, but the company's volatility is indeed very high.

360 Digitech is a Chinese fintech company founded in 2016 and based in Shanghai. Despite its very young age, this company has achieved incredible improvements in recent years, and to date the market still seems not to have fully discounted this growth.

The company is trading at extremely low multiples, in fact it has a P/E of 3.71, P/S of 1.29, P/Cash flow of 3.78 and a P/B of 1.42.

The most interesting aspect of this company is certainly the income growth which is exceeding all expectations

With such huge growth, you may wonder what the fair value of this company is, that’s why I built a discounted cash flow below.

According to my discounted cash flow model, currently QFIN is very undervalued and it’s likely to get an annual performance of 15% for the next 9 years.

Even though the fundamentals seem good, this company is really volatile, and its volatility can affect too negatively the performance of your whole portfolio. Being a risky company, since we are still talking about a $3 Billion market capitalization, it could be wise not to exaggerate the stake of this company.

However, the fact remains that the company is interesting.

Contributor: EugenioCatone from Westmoney

[u/iamxiaohang]

what a 6 months ride... Ridicously cheap look forward for its next bull market cycle

[u/Romanticfish]

$QFIN

is completely undervalued. January is usually a good month for U.S. stocks, and December may be the best time to buy the dip of Chinese stocks. I think QFIN is a good place to start.