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GigaCloud Technology (GCT) is drawing fresh attention after presenting at the 28th Annual Needham Growth Conference, with investors now focused on an upcoming earnings release and shifting expectations around growth and profitability.
See our latest analysis for GigaCloud Technology.
The latest share price of US$39.64 comes after a 90 day share price return of 42.64%, while the 1 year total shareholder return of 87.07% and very large 3 year total shareholder return suggest momentum has been building over time despite recent short term share price weakness.
If GigaCloud’s story has you watching ecommerce and logistics names more closely, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.
With GigaCloud trading near US$39.64, analyst targets at US$37.25, and one intrinsic estimate suggesting a sizable discount, investors may ask whether there is mispricing or the market is already pricing in future growth.
At a last close of US$39.64, GigaCloud Technology trades on a P/E of 11.3x, which screens as inexpensive compared to peers and its own fair P/E estimate.
The P/E multiple compares the share price to the company’s earnings, so it effectively reflects what the market is willing to pay for each dollar of profit. For GigaCloud, that 11.3x multiple sits below the estimated fair P/E of 14.1x and well under both the peer average of 46.6x and the global retail distributors average of 18.7x.
Those gaps are sizeable. This means the market is currently assigning GigaCloud a much lower earnings multiple than similar companies. If the market eventually moves closer to the fair P/E level, that would represent a meaningful shift in how the company’s earnings are valued.
Explore the SWS fair ratio for GigaCloud Technology
Result: Price-to-Earnings of 11.3x (UNDERVALUED)
However, the story can change quickly if ecommerce demand softens, or if cross border logistics costs and competitive pressure start to squeeze GigaCloud’s profitability.
Find out about the key risks to this GigaCloud Technology narrative.
While the 11.3x P/E suggests GigaCloud Technology is on the cheap side, our DCF model presents an even more pronounced difference, with an estimated future cash flow value of US$70.32 compared with a share price of US$39.64. That gap raises a simple question: is the market overlooking certain factors, or are the cash flow assumptions too optimistic?
