Bilibili (NasdaqGS:BILI) Valuation Check After Zacks Rank Upgrade and Stronger Earnings Outlook

Bilibili (BILI) just picked up an upgrade to a Zacks Rank of 2, Buy, after analysts sharply raised full year earnings estimates, a shift that helps explain the stock’s strong year to date rally.

See our latest analysis for Bilibili.

The upgrade lands after a volatile stretch in the stock, with a robust 44.60% year to date share price return contrasting with a softer 29.08% one year total shareholder return. This suggests that momentum is rebuilding as earnings expectations reset.

If this kind of turnaround story has your attention, it could be a smart moment to explore other high growth tech and AI names using high growth tech and AI stocks.

Yet even after a sharp rebound and upgraded earnings outlook, Bilibili still trades at a notable discount to analyst targets. This raises a key question for investors: is this a genuine buying opportunity, or is future growth already priced in?

Most Popular Narrative: 18% Undervalued

Compared with Bilibili's last close at $24.77, the most followed narrative points to a higher fair value, anchored in earnings power and margin gains.

The company's strengthening of its proprietary IP ecosystem through the success of in-house animation and gaming, particularly with long-life cycle titles like San Mou (with international expansion planned), is likely to support higher content-driven revenues and reduced content cost pressures, positively impacting gross and operating margins.

Read the complete narrative.

Curious how steady double digit growth, rising margins, and a rich future earnings multiple can still justify an upside from here? The narrative spells it out.

Result: Fair Value of $30.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory uncertainty in China and Bilibili’s reliance on a narrow pipeline of blockbuster titles could quickly derail the games-led recovery thesis.

Find out about the key risks to this Bilibili narrative.

Another View: Rich Multiple, Different Message

By contrast, Bilibili’s valuation looks stretched on earnings. The stock trades around 93.4 times earnings, far above both the US interactive media industry at 16.7 times and peers at 15.1 times, and even above a fair ratio of 31.4 times. That gap hints at meaningful downside risk if sentiment cools or growth disappoints.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Bilibili Narrative

If you see the numbers differently or want to stress test your own assumptions, build a personalized Bilibili thesis in minutes, Do it your way.

A great starting point for your Bilibili research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. 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. 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.

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