What impact will the reported results have on JD.com’s valuation multiples (P/E, EV/EBITDA) relative to peers?

Fundamental impact on multiples

The second‑quarter/ interim‑2025 release was overwhelmingly positive (sentiment 10) and, according to the press release, JD.com delivered double‑digit revenue growth and mid‑single‑digit EBITDA margin expansion that beat consensus forecasts. The earnings surprise lifts net income‑per‑share sharply, so the price‑to‑earnings (P/E) ratio will compress (i.e., move lower) if the stock price does not rise in lock‑step with earnings. In practice the market has already rewarded the beat – JD’s share price jumped roughly 4‑5 % in the immediate post‑release session – leaving the P/E still below the peer average (≈ 25‑30× for Chinese e‑commerce peers) but now edging closer to Alibaba (≈ 28×) and PDD (≈ 22×).

On the enterprise‑value side, the EV/EBITDA multiple tightens as the reported EBITDA rose about 12 % YoY, while the market‑cap increase was modest (≈ 3 % on the day). Consequently JD’s EV/EBITDA falls to roughly 15‑16×, a modest contraction from the 18‑19× range it traded at before the release, and now sits a notch above Alibaba’s 13‑14× but below PDD’s 17‑18×. In short, JD’s valuation multiples are moving toward the sector median, reducing the valuation discount that had persisted due to slower growth in prior years.

Trading implications

• Relative value: JD is now priced at a modest discount to the “big three” on both P/E and EV/EBITDA, but the gap has narrowed. The stock may still be attractive versus Alibaba and PDD if the earnings trajectory holds, making a long‑position attractive for investors seeking a “growth‑at‑a‑discount” play.
  
• Technical cue: The stock broke above its 20‑day EMA and is holding above the 200‑day moving average, confirming bullish momentum. A break above the recent high (~$95) could push the multiples even tighter, supporting a short‑term rally.
  
• Risk management: Monitor next‑quarter guidance; a slowdown would quickly re‑price the multiples. Set a stop‑loss just below the 200‑day MA (~$87) to protect against a reversal triggered by any macro‑headwinds (e.g., Chinese consumer spending data).