<div id="readability-page-1"><div><h2>Recent performance snapshot</h2> <p>Dmall (SEHK:2586) has drawn attention after a recent 1 day return of 1.65%, building on roughly 3.5% over the past week and about 21% over the past month.</p> <p>See our latest analysis for Dmall.</p> <p>Set against this backdrop, Dmall’s year to date share price return of 15.68% and 1 year total shareholder return of 50.35% suggest momentum has picked up recently, even though the 90 day share price return of a 1.93% decline shows that sentiment has not been a straight line.</p> <p>If Dmall’s recent move has caught your attention, it may be a good moment to broaden your watchlist and look at high growth tech and AI stocks that could fit a similar digital theme.</p> <p>With Dmall still loss making yet trading at HK$8.63 against an analyst price target of HK$15.09, you have to ask: is this a genuine mispricing, or is the market already factoring in future growth?</p> <h2>Preferred Price-to-Sales Multiple of 3.5x: Is it justified?</h2> <p>Based on the latest data, Dmall trades on a P/S of 3.5x, which screens as mixed value when you line it up against both peers and an estimated fair level.</p> <p>The P/S ratio compares the company’s market value to its revenue, and it is often used for loss making software names where earnings are not yet a guide. For Dmall, this matters because the business is still loss making, with revenue of CN¥1,998.27m and a reported loss of CN¥1,892.88m.</p> <p>On one hand, Dmall is flagged as good value versus a peer average P/S of 4.2x. This suggests the market is not assigning the same revenue multiple as similar Hong Kong software companies. On the other hand, the SWS fair ratio framework marks Dmall as expensive versus an estimated fair P/S of 2.8x. This is a level the market could potentially move towards if expectations cool or revenue does not track forecasts.</p> <p>Against the broader Hong Kong software industry, Dmall is also described as expensive, with its 3.5x P/S above the industry average of 2.7x. This again hints that investors are currently paying a premium per unit of sales relative to many local peers.</p> <p>Explore the SWS fair ratio for Dmall</p> <p><strong>Result: Price-to-Sales of 3.5x (OVERVALUED)</strong></p> <p>However, there are still clear risks, including ongoing CN¥1,892.88m net losses and the possibility that revenue growth of 15.91% does not support a 3.5x P/S multiple.</p> <p>Find out about the key risks to this Dmall narrative.</p> <h2>Another view using our DCF model</h2> <p>While the 3.5x P/S points to an expensive share price versus the fair ratio of 2.8x, our DCF model is even more cautious. At HK$8.63, Dmall trades above an estimated future cash flow value of HK$3.90, which implies less room for error if the story does not play out as forecast.</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/44fa16e4-fc08-4951-b249-15c047d18f70/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/44fa16e4-fc08-4951-b249-15c047d18f70/chart/dcf"/><figcaption>2586 Discounted Cash Flow as at Jan 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Dmall for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2> Build Your Own Dmall Narrative</h2> <p>If this view does not quite match your own, you can weigh the same data and build a fresh angle in just a few minutes, then Do it your way.</p> <p>A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Dmall.</p> <h2>Looking for more investment ideas?</h2> <p>If Dmall is on your radar, do not stop there. Use the Simply Wall Street Screener to quickly uncover fresh ideas that match what you are looking for.</p> <ul> <li>Spot potential value gaps by checking out these 876 undervalued stocks based on cash flows, which currently screens well on cash flows and could broaden your opportunity set beyond Dmall.</li> <li>Tap into future-facing themes with these 23 quantum computing stocks, where companies are working on technologies that many investors are still ignoring.</li> <li>Strengthen your income watchlist by reviewing these 14 dividend stocks with yields &gt; 3%, focused on yields above 3% that may appeal if you want more consistent cash returns.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

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<p>Dmall (SEHK:2586) has shown strong momentum with a recent 1-day return of 1.65%, 3.5% over the past week, and 21% over the past month. Despite a year-to-date return of 15.68% and a 1-year total shareholder return of 50.35%, the company remains loss-making with a P/S ratio of 3.5x, which is considered overvalued compared to peers. Analysts suggest a fair P/S of 2.8x, indicating potential risks if revenue growth does not meet expectations. Dmall's current trading price of HK$8.63 is above its estimated future cash flow value of HK$3.90, suggesting limited upside potential.</p>

Assessing Dmall (SEHK:2586) Valuation As Shares Show Strong Recent Momentum