Research Article
Analysis of the Investment Value of the E-commerce Industry
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326935, author={Hanting Xu and Xin Yan and Haotian Zheng}, title={Analysis of the Investment Value of the E-commerce Industry}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={e-commerce; undervalued; best buy; value investing}, doi={10.4108/eai.18-11-2022.2326935} }- Hanting Xu
Xin Yan
Haotian Zheng
Year: 2023
Analysis of the Investment Value of the E-commerce Industry
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326935
Abstract
This paper bases on the data from 2014 to 2019 to pick the most promising company in the E-commerce industry. Our analysis may give the insights and the advice to the investors and the relevant financial corporations in related field. In this paper, we select several indicators, i.e., profitability, PE ratio, dividend yield and the EPS etc., to comprehensively evaluate one representative company, i.e., Best Buy, in E-commerce industry. The results show that the EPS of Best Buy in 2019 is 5.75, the profitability of Best Buy is 69.66%, which is higher than 95% of companies in E-commerce industry. The dividend yield of Best Buy is 2.47%, which is higher than 70% of companies in the peer industry. The P/E ratio of Best Buy is 14.73, which is lower than 70% of companies in the peer industry. The results indicate that Best Buy Corporation is undervalued and should be focused more when making an investment decision regarding the E-commerce industry.