Meituan Valuation

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

9MDA (€40) is trading below our estimate of [[fair value]] (€95.73)

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

Valuation Score

3/6

Valuation Score 3/6

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 9MDA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9MDA (€40) is trading below our estimate of fair value (€95.73)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for 9MDA. This is calculated by dividing 9MDA's market cap by their current earnings.
What is 9MDA's PE Ratio?
PE Ratio	40.9x
Earnings	CN¥22.53b
Market Cap	CN¥922.34b

9MDA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.7x
Enterprise Value/EBITDA	36.1x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 9MDA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	36.3x
SBUX Starbucks	30.9x	10.5%	US$113.4b
CMG Chipotle Mexican Grill	57x	15.5%	US$81.8b
CPG Compass Group	31.9x	11.8%	UK£44.9b
MCD McDonald's	25.2x	6.6%	US$206.7b
9MDA Meituan	40.9x	28.6%	€990.9b

Price-To-Earnings vs Peers: 9MDA is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the peer average (36.3x).

Price to Earnings Ratio vs Industry

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

10 Companies	Price / Earnings	Estimated Growth	Market Cap

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 9MDA is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the European Hospitality industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is 9MDA'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.

9MDA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	40.9x
Fair PE Ratio	51.4x

Price-To-Earnings vs Fair Ratio: 9MDA is good value based on its Price-To-Earnings Ratio (40.9x) compared to the estimated Fair Price-To-Earnings Ratio (51.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.