KE Holdings (ADR) (BEKE)
Real Estate · NYSE · China
Fundamentals
Valuation and ratings
KE Holdings (ADR) trades at $17.46, which is 64% above the $6.23 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 31 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 35.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About KE Holdings (ADR)
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company operates through five segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, Home rental services, and Emerging and Other Services. It operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage brand; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers. The company also owns the Deyou brand for connected brokerage stores; and other brands. In addition, it offers rental property management and operation services; and contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
BEKE passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$72.75M · 0.1% of book
- Christopher Davis, DAVIS SELECTED ADVISERS$27.72M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$16.90M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$9.87M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$1.01M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is KE Holdings (ADR) (BEKE) undervalued?
Against our discounted cash flow estimate of $6.23, BEKE at $17.46 is 64% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own BEKE?
5 of the institutions we track reported a position in BEKE in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is BEKE's P/E ratio?
BEKE trades at 35.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.