Meituan

DB:9MD Stock Report

Market Cap: €115.9b

Meituan Valuation

Is 9MD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9MD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9MD (€19.6) is trading below our estimate of fair value (€43.19)

Significantly Below Fair Value: 9MD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9MD?

Key metric: As 9MD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9MD. This is calculated by dividing 9MD's market cap by their current earnings.
What is 9MD's PE Ratio?
PE Ratio27.3x
EarningsCN¥31.80b
Market CapCN¥883.34b

Price to Earnings Ratio vs Peers

How does 9MD's PE Ratio compare to its peers?

The above table shows the PE ratio for 9MD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.1x
SBUX Starbucks
26.4x10.1%US$99.7b
CMG Chipotle Mexican Grill
56.6x15.5%US$84.4b
CPG Compass Group
40.1x16.9%UK£44.9b
MCD McDonald's
25.3x6.6%US$209.7b
9MD Meituan
27.3x21.4%€940.5b

Price-To-Earnings vs Peers: 9MD is good value based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (37.3x).

Price to Earnings Ratio vs Industry

How does 9MD's PE Ratio compare vs other companies in the European Hospitality Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
9MD 27.3xIndustry Avg. 17.5xNo. of Companies16PE01224364860+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9MD is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Hospitality industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is 9MD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9MD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio46.4x

Price-To-Earnings vs Fair Ratio: 9MD is good value based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (46.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 9MD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.16
€25.17
+31.4%
17.2%€36.78€15.26n/a36
Dec ’25€19.20
€23.45
+22.1%
24.0%€36.32€13.01n/a38
Nov ’25€22.03
€22.50
+2.2%
23.8%€31.90€12.93n/a37
Oct ’25€20.00
€18.22
-8.9%
15.8%€23.30€12.76n/a37
Sep ’25€13.55
€17.66
+30.3%
14.2%€23.23€12.78n/a39
Aug ’25€12.51
€16.90
+35.1%
15.0%€23.73€12.58n/a38
Jul ’25€13.10
€17.08
+30.4%
15.6%€24.02€12.63n/a41
Jun ’25€12.25
€16.24
+32.6%
20.3%€23.80€11.03n/a41
May ’25€13.01
€16.22
+24.7%
20.9%€24.19€11.21n/a41
Apr ’25€11.38
€15.96
+40.2%
21.9%€23.98€9.46n/a41
Mar ’25€10.41
€16.79
+61.3%
32.2%€32.32€7.89n/a41
Feb ’25€7.40
€17.50
+136.5%
28.2%€32.46€8.88n/a41
Jan ’25€9.24
€18.15
+96.3%
25.6%€32.17€8.52n/a41
Dec ’24€10.25
€18.88
+84.2%
27.3%€35.68€10.59€19.2041
Nov ’24€13.09
€23.29
+77.9%
17.1%€35.81€14.12€22.0340
Oct ’24€13.53
€23.58
+74.3%
16.6%€35.88€14.15€20.0041
Sep ’24€15.75
€23.23
+47.5%
15.0%€31.14€13.97€13.5542
Aug ’24€16.68
€22.87
+37.1%
15.7%€31.63€13.26€12.5142
Jul ’24€14.10
€22.70
+61.0%
15.9%€31.39€13.16€13.1042
Jun ’24€13.52
€23.64
+74.9%
15.6%€32.54€13.64€12.2542
May ’24€15.22
€23.67
+55.6%
15.7%€31.60€13.22€13.0142
Apr ’24€16.40
€23.99
+46.3%
16.1%€32.12€11.57€11.3842
Mar ’24€16.55
€26.81
+62.0%
16.7%€34.62€11.84€10.4141
Feb ’24€20.49
€27.31
+33.3%
15.7%€36.70€15.71€7.4039
Jan ’24€20.75
€27.09
+30.6%
15.7%€36.39€15.58€9.2443
Dec ’23€19.76
€26.96
+36.5%
16.4%€36.34€15.55€10.2542

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 23:01
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Meituan is covered by 66 analysts. 42 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sau Shing ChowABCI Securities Company Limited
Zixiao YangArete Research Services LLP
Jiong ShaoBarclays