| Company name | Autohome Inc |
| Stock ticker | ATHM |
| Live stock price | [stckqut]ATHM[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $134.87 |
| Target stock price (averages with growth) | $120.97 |
| Target stock price (averages with no growth) | $107.69 |
| Target stock price (manual assumptions) | $135.19 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/athm
Autohome Inc., incorporated on June 23, 2008, is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry.
The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. Most of the content on its Websites is tagged by vehicle models to facilitate user access. A user searching for or navigating to a page for a specific vehicle model will be provided with links to relevant content, such as vehicle specifications, photos and video clips, reviews, competing vehicle models, and listing and promotional information from local dealers. Users can compare competing vehicle models and brands for price and specifications to make informed purchase decisions. In addition, these user behavior data are summarized and analyzed on a regular basis to manage user experience and provide consumer intelligence to its advertisers. The Company’s content can be accessed on its Websites through personal computers (PCs) and mobile devices and on its mobile applications. The Company has approximately nine iPhone Operating System (iOS)-based applications and over eight Android-based applications. In addition, through its location-based services, users are able to obtain vehicle pricing information directly from their nearby dealers in approximately 330 cities in China.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Autohome Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Autohome Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $87.39
- Growth: 0.2
- Current EPS (TTM): $3.5
- P/E: 25
- Future EPS Calc: $8.7
- Future Stock Price Calc: $217.72
- Target stock price: $135.19
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I hope that this makes you a Confident Investor.