H World Group Valuation

Is CL4 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 CL4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CL4 (€3.2) is trading below our estimate of fair value (€4.94)

Significantly Below Fair Value: CL4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CL4?

Key metric: As CL4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CL4. This is calculated by dividing CL4's market cap by their current earnings.
What is CL4's PE Ratio?
PE Ratio	21.3x
Earnings	CN¥3.81b
Market Cap	CN¥81.13b

CL4 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	4.6x
Enterprise Value/EBITDA	16.4x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does CL4's PE Ratio compare to its peers?

The above table shows the PE ratio for CL4 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	12.8x
TUI1 TUI	7.3x	16.5%	€3.9b
IFA LS Invest	6.6x	n/a	€296.1m
TIMA ZEAL Network	19.4x	-5.0%	€911.8m
AC Accor	17.8x	8.7%	€10.5b
CL4 H World Group	21.3x	12.8%	€11.2b

Price-To-Earnings vs Peers: CL4 is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (12.8x).

Price to Earnings Ratio vs Industry

How does CL4'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: CL4 is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the European Hospitality industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is CL4'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.

CL4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.3x
Fair PE Ratio	29.9x

Price-To-Earnings vs Fair Ratio: CL4 is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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.