KE Holdings Inc. (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services in China, witnessed a significant 5.07% surge in its stock price on Monday, October 1, 2024. This upward movement can be attributed to two key factors: the company's recent share repurchases and its perceived undervaluation in the market.

Firstly, KE Holdings has disclosed a series of share buybacks spanning several dates in September 2024, with a notable final repurchase of 435,000 shares on September 20, 2024, via the New York Stock Exchange. These repurchases, conducted at varying prices, are in compliance with the Main Board Listing Rules and form part of the company's buyback mandate, which restricts new share issues until October 20, 2024. This strategic move could signal the company's confidence in its stock value and a commitment to enhancing shareholder value.

Secondly, an analysis by investment research firm Simply Wall St suggests that KE Holdings' stock is currently trading at a significant discount of approximately 32.5% compared to its estimated fair value based on cash flow analysis. Despite recent impairment charges and mixed earnings for the first half of 2024, the company has demonstrated robust revenue growth in the second quarter of 2024, with revenue reaching CNY 23,370.43 million, compared to CNY 19,483.92 million a year ago. This potential undervaluation, coupled with the company's increased buyback authorization of $1 billion to $3 billion and extension of the plan duration until August 31, 2025, has likely contributed to the positive investor sentiment surrounding the stock.