Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

58.com

NYSE:WUBA
Snowflake Description

Solid track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WUBA
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Media
Company description

58.com Inc. operates various multi-category online classifieds platforms and vertical listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China. The last earnings update was 27 days ago. More info.


Add to Portfolio Compare Print
  • 58.com has significant price volatility in the past 3 months.
WUBA Share Price and Events
7 Day Returns
6.3%
NYSE:WUBA
-1.7%
US Interactive Media and Services
-2.6%
US Market
1 Year Returns
-26.9%
NYSE:WUBA
-10.5%
US Interactive Media and Services
-13.3%
US Market
WUBA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
58.com (WUBA) 6.3% 0.6% -23.2% -26.9% 39.1% -23.4%
US Interactive Media and Services -1.7% -11.9% -21.9% -10.5% 21.3% 73.1%
US Market -2.6% -15.2% -22.2% -13.3% 5.7% 17.2%
1 Year Return vs Industry and Market
  • WUBA underperformed the Interactive Media and Services industry which returned -10.5% over the past year.
  • WUBA underperformed the Market in United States of America which returned -13.3% over the past year.
Price Volatility
WUBA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is 58.com undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of 58.com to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for 58.com.

NYSE:WUBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WUBA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 25%) (0.5%))
1.022
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.022 * 6.33%)
8.21%

Discounted Cash Flow Calculation for NYSE:WUBA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for 58.com is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:WUBA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.21%)
2020 3,023.26 Analyst x3 2,793.94
2021 5,032.00 Analyst x5 4,297.57
2022 4,791.05 Analyst x2 3,781.42
2023 5,066.23 Analyst x1 3,695.30
2024 5,274.95 Est @ 4.12% 3,555.70
2025 5,454.61 Est @ 3.41% 3,397.91
2026 5,613.13 Est @ 2.91% 3,231.42
2027 5,756.61 Est @ 2.56% 3,062.65
2028 5,889.67 Est @ 2.31% 2,895.76
2029 6,015.71 Est @ 2.14% 2,733.38
Present value of next 10 years cash flows CN¥33,445.00
NYSE:WUBA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥6,015.71 × (1 + 1.74%) ÷ (8.21% – 1.74%)
CN¥94,628.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥94,628.06 ÷ (1 + 8.21%)10
CN¥42,996.50
NYSE:WUBA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥33,445.00 + CN¥42,996.50
CN¥76,441.50
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥76,441.50 / 149.64
CN¥510.84
NYSE:WUBA Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NYSE:WUBA)
0.141
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥510.84 x 0.141
$72.03
Value per share (USD) From above. $72.03
Current discount Discount to share price of $51.98
= -1 x ($51.98 - $72.03) / $72.03
27.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price 58.com is available for.
Intrinsic value
28%
Share price is $51.98 vs Future cash flow value of $72.03
Current Discount Checks
For 58.com to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 58.com's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • 58.com's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for 58.com's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are 58.com's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WUBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥55.59
NYSE:WUBA Share Price ** NYSE (2020-04-06) in USD $51.98
NYSE:WUBA Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.092 CN¥368.66
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 29 Publicly-Listed Interactive Media and Services Companies 23.8x
United States of America Market PE Ratio Median Figure of 2,946 Publicly-Listed Companies 12.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of 58.com.

NYSE:WUBA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WUBA Share Price ÷ EPS (both in CNY)

= 368.66 ÷ 55.59

6.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 58.com is good value based on earnings compared to the US Interactive Media and Services industry average.
  • 58.com is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does 58.com's expected growth come at a high price?
Raw Data
NYSE:WUBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
-33.3%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 24 Publicly-Listed Interactive Media and Services Companies 1.46x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:WUBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.63x ÷ -33.3%

-0.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 58.com earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on 58.com's assets?
Raw Data
NYSE:WUBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥206.71
NYSE:WUBA Share Price * NYSE (2020-04-06) in USD $51.98
NYSE:WUBA Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.092 CN¥368.66
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 60 Publicly-Listed Interactive Media and Services Companies 1.81x
United States of America Market PB Ratio Median Figure of 5,158 Publicly-Listed Companies 1.22x
NYSE:WUBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WUBA Share Price ÷ Book Value per Share (both in CNY)

= 368.66 ÷ 206.71

1.78x

* Primary Listing of 58.com.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 58.com is good value based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess 58.com's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. 58.com has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is 58.com expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-33.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is 58.com expected to grow at an attractive rate?
  • 58.com's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • 58.com's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • 58.com's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WUBA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WUBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts -33.3%
NYSE:WUBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 10.3%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 13%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WUBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WUBA Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 23,566 4,248 1
2022-12-31 21,248 5,377 4,111 8
2021-12-31 19,169 5,304 3,224 15
2020-12-31 15,863 3,319 2,302 13
2020-04-07
NYSE:WUBA Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 15,577 8,278
2019-09-30 15,030 6,079
2019-06-30 14,399 6,014
2019-03-31 13,695 2,521
2018-12-31 13,138 3,800 1,997
2018-09-30 12,293 2,000
2018-06-30 11,389 1,627
2018-03-31 10,552 1,481
2017-12-31 10,069 2,780 1,285
2017-09-30 9,399 733
2017-06-30 8,719 180
2017-03-31 8,071 -269

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 58.com's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • 58.com's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WUBA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from 58.com Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WUBA Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 27.45 27.45 27.45 1.00
2022-12-31 25.32 27.62 23.54 3.00
2021-12-31 21.70 25.56 18.07 11.00
2020-12-31 15.76 19.30 10.71 11.00
2020-04-07
NYSE:WUBA Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 55.59
2019-09-30 40.95
2019-06-30 40.60
2019-03-31 17.06
2018-12-31 13.54
2018-09-30 13.59
2018-06-30 11.09
2018-03-31 10.13
2017-12-31 8.82
2017-09-30 5.05
2017-06-30 1.24
2017-03-31 -1.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • 58.com is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess 58.com's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
58.com has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has 58.com performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare 58.com's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 58.com has delivered over 20% year on year earnings growth in the past 5 years.
  • 58.com's 1-year earnings growth exceeds its 5-year average (314.5% vs 75.3%)
  • 58.com's earnings growth has exceeded the US Interactive Media and Services industry average in the past year (314.5% vs 5.5%).
Earnings and Revenue History
58.com's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from 58.com Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WUBA Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 15,576.52 8,278.21 8,866.96 2,058.66
2019-09-30 15,030.30 6,079.38 8,741.71 1,780.74
2019-06-30 14,399.10 6,013.97 8,474.83 1,728.60
2019-03-31 13,694.90 2,520.57 8,176.40 1,640.63
2018-12-31 13,137.82 1,997.00 7,821.31 1,492.05
2018-09-30 12,293.19 2,000.12 7,364.11 1,392.12
2018-06-30 11,388.91 1,627.21 6,856.72 1,296.21
2018-03-31 10,551.68 1,481.16 6,357.11 1,225.36
2017-12-31 10,068.78 1,285.07 6,153.38 1,193.44
2017-09-30 9,398.87 733.04 6,045.98 1,101.73
2017-06-30 8,719.00 180.36 5,641.65 1,256.57
2017-03-31 8,070.82 -268.81 5,709.54 968.13
2016-12-31 7,592.13 -783.76 5,765.49 885.70
2016-09-30 6,910.54 -316.78 5,619.21 1,024.69
2016-06-30 6,629.17 -1,594.77 6,194.83 1,031.98
2016-03-31 5,425.63 -1,772.12 5,635.64 888.25
2015-12-31 4,478.10 -1,573.64 5,162.20 574.10
2015-09-30 3,431.25 -1,793.11 3,787.75 591.42
2015-06-30 2,472.70 -434.72 2,407.80 418.14
2015-03-31 1,883.53 -198.62 1,780.11 323.30
2014-12-31 1,628.12 139.43 1,233.40 268.34
2014-09-30 1,412.09 173.55 992.39 227.48
2014-06-30 1,241.85 172.77 837.70 189.93
2014-03-31 1,058.46 117.05 700.96 168.39
2013-12-31 882.35 55.65 590.37 152.19
2013-09-30 766.25 -43.34 552.32 147.74
2013-06-30 657.15 -113.45 531.28 138.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 58.com has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • 58.com used its assets less efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
  • 58.com has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess 58.com's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
58.com has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is 58.com's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up 58.com's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 58.com is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • 58.com's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of 58.com's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -3.1297948569146E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from 58.com Company Filings, last reported 3 months ago.

NYSE:WUBA Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 35,008.53 0.00 13,777.55
2019-09-30 32,148.08 0.12 9,422.37
2019-06-30 29,482.19 38.00 8,171.77
2019-03-31 25,081.27 723.85 6,847.90
2018-12-31 24,261.16 812.79 6,975.09
2018-09-30 23,605.44 852.01 6,350.44
2018-06-30 22,654.81 823.79 6,673.52
2018-03-31 21,869.22 825.97 5,612.46
2017-12-31 21,551.54 852.43 4,962.69
2017-09-30 20,889.96 1,444.78 4,346.99
2017-06-30 20,465.84 1,946.30 3,728.33
2017-03-31 17,939.59 1,979.30 2,355.53
2016-12-31 17,852.18 1,992.72 2,060.30
2016-09-30 18,010.30 1,772.45 2,008.99
2016-06-30 18,194.81 1,761.46 2,093.96
2016-03-31 17,903.14 1,807.32 3,313.56
2015-12-31 18,391.26 1,785.74 3,406.04
2015-09-30 17,866.64 2,542.72 3,842.83
2015-06-30 11,421.91 0.00 2,825.54
2015-03-31 3,427.56 0.00 2,670.76
2014-12-31 3,146.38 0.00 3,777.24
2014-09-30 3,078.96 0.00 3,844.07
2014-06-30 3,067.24 0.00 2,576.37
2014-03-31 1,388.88 0.00 2,000.75
2013-12-31 1,333.59 0.00 1,883.37
2013-09-30 -11.79 0.00 450.14
2013-06-30 -69.72 0.00 317.10
  • 58.com's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if 58.com's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • 58.com has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess 58.com's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. 58.com has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is 58.com's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from 58.com dividends. Estimated to be 0% next year.
If you bought $2,000 of 58.com shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate 58.com's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate 58.com's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WUBA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 0.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WUBA Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2020-04-07

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as 58.com has not reported any payouts.
  • Unable to verify if 58.com's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of 58.com's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as 58.com has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of 58.com's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess 58.com's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can 58.com afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 58.com has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of 58.com's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Yao
AGE 43
TENURE AS CEO 20.3 years
CEO Bio

Mr. Jinbo Yao, also known as Michael, Founded 58.com Inc. in 2000. (Beijing 58 Information and Technology Co., Ltd). Mr. Yao has been Chairman and Chief Executive Officer of 58.com Inc. (Beijing 58 Information and Technology Co., Ltd) since 2000. Mr. Yao served as President of 58.com Inc. since 2000. He served as Co-Chief Executive Officer of 58.com Inc. until November 25, 2015. Mr. Yao Co-founded Xueda Education Group. He founded www.58.com in 2005 and serves as its Chief Executive Officer. From 2000 to 2005, he served as a Product Manager, Chief Director and Vice President for Marketing at www.net.cn, a China-based Internet application service provider. Prior to that, in 2000, he founded domain.cn, which was subsequently acquired by net.cn in September 2000. He served as Director at Uxin Limited since June 2019 until December 27, 2019. Mr. Yao served various managerial roles at net.cn including Vice President of Sales until 2005. Mr. Yao is a pioneer in the PRC internet industry. He has been a Director of Xueda Education Group since 2001. He served as Co-Chairman of 58.com Inc. He has been an Independent Director of Noah Holdings Limited since November 2014. He has been Director of Cheetah Mobile Inc. since December 28, 2017. He has been a Director of 58.com Inc. (Beijing 58 Information and Technology Co., Ltd) since 2000. Mr. Yao is the sole director of Beijing Wanglintong Information Technology Co., Ltd., or Beijing Wanglintong. Mr. Yao is also an executive director of Tianjin 58 Home, 58 Home’s consolidated affiliated entity. He serves as Chief Executive Officer of 58.Co.Ltd. Mr. Yao has Bachelor's degree in Computer Science and Chemistry from the Ocean University of China in Qingdao, China in 1999.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Insufficient data for Michael to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the 58.com management team in years:

1.8
Average Tenure
43
Average Age
  • The average tenure for the 58.com management team is less than 2 years, this suggests a new team.
Management Team

Michael Yao

TITLE
Chairman & CEO
AGE
43
TENURE
20.3 yrs

Jiandong Zhuang

TITLE
Co-President
AGE
50
TENURE
1.8 yrs

Mingke He

TITLE
Co-president
AGE
40
TENURE
1.8 yrs

Wei Ye

TITLE
Chief Financial Officer
AGE
46
TENURE
0.6 yrs

Hongyu Xing

TITLE
Chief Technology Officer
AGE
46
TENURE
4.1 yrs

Hao Zhou

TITLE
President of International Business & Head of IR
AGE
43
TENURE
0.6 yrs

Minghui Xiang

TITLE
Chief People Officer
AGE
39
TENURE
1.8 yrs

Xiaohua Chen

TITLE
Chief Strategic Officer & CEO of 58 Home Business Units
AGE
37
TENURE
5.9 yrs
Board of Directors Tenure

Average tenure and age of the 58.com board of directors in years:

6.5
Average Tenure
43
Average Age
  • The tenure for the 58.com board of directors is about average.
Board of Directors

Michael Yao

TITLE
Chairman & CEO
AGE
43
TENURE
20.3 yrs

Hurst Lin

TITLE
Independent Director
AGE
54
TENURE
10.1 yrs

Herman Yu

TITLE
Independent Director
AGE
49
TENURE
6.5 yrs

Eric Zhang

TITLE
Independent Director
AGE
43
TENURE
4.4 yrs

Free Wu

TITLE
Director
AGE
43
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess 58.com's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 58.com has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is There An Opportunity With 58.com Inc.'s (NYSE:WUBA) 27% Undervaluation?

(NYSE:WUBA) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CN¥, Millions) CN¥4.5b CN¥5.3b CN¥5.8b CN¥5.5b CN¥5.3b CN¥5.2b CN¥5.2b CN¥5.3b CN¥5.3b CN¥5.4b Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x1 Est @ -5.49% Est @ -3.02% Est @ -1.3% Est @ -0.09% Est @ 0.76% Est @ 1.35% Est @ 1.76% Present Value (CN¥, Millions) Discounted @ 8.66% CN¥4.2k CN¥4.5k CN¥4.5k CN¥3.9k CN¥3.5k CN¥3.2k CN¥2.9k CN¥2.7k CN¥2.5k CN¥2.4k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CN¥34.3b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.7%.

Simply Wall St -

Did 58.com Inc. (NYSE:WUBA) Use Debt To Deliver Its ROE Of 11%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for 58.com: 11% = CN¥2.5b ÷ CN¥25b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … 58.com's Debt And Its 11% ROE While 58.com does have a tiny amount of debt, with debt to equity of just 0.029, we think the use of debt is very modest.

Simply Wall St -

Is 58.com Inc. (NYSE:WUBA) Better Than Average At Deploying Capital?

What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for 58.com: 0.094 = CN¥2.4b ÷ (CN¥33b - CN¥7.4b) (Based on the trailing twelve months to March 2019.) So, 58.com has an ROCE of 9.4%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is There Now An Opportunity In 58.com Inc. (NYSE:WUBA)?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … However, given that 58.com’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WUBA.

Simply Wall St -

We Think 58.com (NYSE:WUBA) Can Manage Its Debt With Ease

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … 58.com may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

The 58.com (NYSE:WUBA) Share Price Has Gained 31% And Shareholders Are Hoping For More

Check out our latest analysis for 58.com To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … On the bright side, long term shareholders have made money, with a gain of 5.5% per year over half a decade.

Simply Wall St -

A Holistic Look At 58.com Inc. (NYSE:WUBA)

This implies that WUBA manages its cash and cost levels well, which is a key determinant of the company’s health. … Take a look at our free research report of analyst consensus for WUBA’s outlook. … The intrinsic value infographic in our free research report helps visualize whether WUBA is currently mispriced by the market.

Simply Wall St -

If You Like EPS Growth Then Check Out 58.com (NYSE:WUBA) Before It's Too Late

See our latest analysis for 58.com 58.com's Improving Profits In the last three years 58.com's earnings per share took off like a rocket; fast, and from a low base. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Should You Be Worried About 58.com Inc.'s (NYSE:WUBA) 8.8% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.088 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is 58.com Inc. (NYSE:WUBA) Undervalued After Accounting For Its Future Growth?

(NYSE:WUBA) is considered a high-growth stock, but its last closing price of $71.69 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … 58.com's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Company Info

Description

58.com Inc. operates various multi-category online classifieds platforms and vertical listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China. It operates multi-content category online classified platforms primarily under the 58 and Ganji names; Anjuke, an online real estate listing platform; ChinaHR, an online recruitment platform that focuses on white collar jobs; and Jia Xiao Yi Dian Tong, an online platform for driver’s license examination preparation and other related services. The company also operates Zhuan Zhuan, an online used goods trading and service platform; and 58 Town, a rural version of 58.com. Its platform offers content in the categories, including real estate, jobs, automotive, yellow pages, and used goods. 58.com Inc. was founded in 2005 and is headquartered in Beijing, the People’s Republic of China.

Details
Name: 58.com Inc.
WUBA
Exchange: NYSE
Founded: 2005
$7,778,219,937
149,638,706
Website: http://www.58.com
Address: 58.com Inc.
Building 105,
10 Jiuxianqiao North Road Jia,
Beijing,
100015,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WUBA ADR EACH REPR 2 COM USD0.00001 New York Stock Exchange US USD 31. Oct 2013
DB 58QA ADR EACH REPR 2 COM USD0.00001 Deutsche Boerse AG DE EUR 31. Oct 2013
LSE 0A2G ADR EACH REPR 2 COM USD0.00001 London Stock Exchange GB USD 31. Oct 2013
BMV WUBA N ADR EACH REPR 2 COM USD0.00001 Bolsa Mexicana de Valores MX MXN 31. Oct 2013
Number of employees
Current staff
Staff numbers
22,916
58.com employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 03:44
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/05
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.