RERE
ATRenew Inc.
$3.73
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 16.9% above fair value
You pay
$3.73
Bear
$2.79
Fair
$3.19
Bull
$3.59
Bear
$2.79
-25.1%
$0.13 × 21x P/E
Fair
$3.19
-14.4%
$0.13 × 24x P/E
Bull
$3.59
-3.7%
$0.13 × 27x P/E
Adjust Assumptions
24.0x
0.13$
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
28.1x
Summary
Applying a 24x P/E to adjusted EPS of $0.13, the base-case value is $3.19 per share.
Warnings
Financial statements were converted from CNY into USD using USDCNY at 0.1494 USD per CNY.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples