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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Vipshop Holdings's Interest Coverage for the quarter that ended in Jun. 2026 was 6.26.
Vipshop Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.12.
As of today, Vipshop Holdings's Altman Z-Score is 2.57.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Vipshop Holdings has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Vipshop Holdings Financial Strength Related Terms
VIPS vs GLBE, ETSY, CHWY: Financial Strength Comparison
For the Internet Retail subindustry, Vipshop Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vipshop Holdings Financial Strength vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Vipshop Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Vipshop Holdings's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Vipshop Holdings has a Z-score of 2.57, indicating it is in Grey Zones. This implies that Vipshop Holdings is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.57 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vipshop Holdings (VIPS) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vipshop Holdings and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, Vipshop Holdings' Financial Strength has ranged from 7.00 to 10.00.
Is Vipshop Holdings' Financial Strength too high?
Vipshop Holdings' current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Vipshop Holdings has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vipshop Holdings' Financial Strength compare to GLBE and ETSY?
Vipshop Holdings' Financial Strength of 8 can be compared against companies in the Retail - Cyclical industry. Historically, Vipshop Holdings' own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Retail - Cyclical company?
A good Financial Strength depends on the Retail - Cyclical industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vipshop Holdings and its competitors. Vipshop Holdings's current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vipshop Holdings stock overvalued right now?
Based on GuruFocus' analysis, Vipshop Holdings (VIPS) is currently considered Modestly Undervalued. The stock's GF Value™ is $17.22, compared to a current price of $13.01 — trading 24.5% below its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. Vipshop Holdings' overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Vipshop Holdings (VIPS), the current Financial Strength is 8 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vipshop Holdings (VIPS) Overvalued in 2026?
Based on GuruFocus' analysis, Vipshop Holdings stock appears to be undervalued.
The current stock price of $13.01 is trading 24.5% below its estimated GF Value™ of $17.22.
GuruFocus considers Vipshop Holdings to be Modestly Undervalued.
Key valuation signals for VIPS:
Financial Strength: 8 (11% below median its 10-year median of 9.00)
GF Value™: $17.22 vs. price of $13.01 (24.5% below fair value)
No single metric tells the full story. See the VIPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vipshop is a leading Chinese online discount retailer offering branded products at attractive discounts of 10%-90% off their original price through daily flash sales. It operates warehousing, retailing, product procurement, software development, and information technology support in-house while outsourcing to third-party logistics providers for distribution and shipments. Branded products on Vipshop's platform are sourced mostly through a consignment model with global brand partners. As of March 31, 2025, Eric Ya Shen, chair and CEO, had 64.5% voting rights. Leading Chinese social media firm and strategic shareholder Tencent also holds a 12.5% interest.
80GF Score
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