H World Group Limited

DB:CL4A Stock Report

Market Cap: €11.3b

H World Group Valuation

Is CL4A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of CL4A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: CL4A (€37) is trading below our estimate of future cash flow value (€54.65)

Significantly Below Future Cash Flow Value: CL4A is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CL4A?

Key metric: As CL4A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CL4A. This is calculated by dividing CL4A's market cap by their current earnings.
What is CL4A's PE Ratio?
PE Ratio17.6x
EarningsCN¥5.00b
Market CapCN¥88.07b

Price to Earnings Ratio vs Peers

How does CL4A's PE Ratio compare to its peers?

The above table shows the PE ratio for CL4A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
TUI1 TUI
5.2x10.87%€3.7b
CDZ0 MHP Hotel
11.2x-5.07%€64.9m
AC Accor
29.2x13.88%€11.2b
500850 Indian Hotels
50.4x11.72%₹1.1t
CL4A H World Group
17.6x12.30%€13.0b

Price-To-Earnings vs Peers: CL4A is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (24x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does CL4A's PE Ratio compare vs other companies in the European Hospitality Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CL4A 17.6xIndustry Avg. 17.6xNo. of Companies16PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CL4A is good value based on its Price-To-Earnings Ratio (17.6x) compared to the European Hospitality industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is CL4A'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.

CL4A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: CL4A is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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 CL4A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€37.00
€52.12
+40.86%
8.54%€57.03€38.04n/a17
Jun ’27€38.20
€51.64
+35.17%
8.01%€56.26€37.52n/a17
May ’27€43.80
€51.48
+17.55%
8.53%€56.14€36.88n/a16
Apr ’27€43.40
€51.92
+19.64%
8.59%€56.44€37.08n/a16
Mar ’27€46.60
€45.95
-1.39%
12.87%€55.50€32.70n/a15
Feb ’27€40.60
€44.29
+9.08%
12.11%€53.12€32.16n/a15
Jan ’27€40.20
€43.83
+9.03%
11.77%€53.31€32.27n/a15
Dec ’26€39.40
€42.80
+8.63%
9.36%€50.21€32.29n/a16
Nov ’26€32.80
€39.21
+19.55%
9.40%€48.10€32.31n/a15
Oct ’26€33.20
€37.67
+13.47%
10.96%€47.24€30.58n/a14
Sep ’26€31.00
€37.51
+20.99%
10.82%€47.22€30.57n/a15
Aug ’26€26.40
€37.45
+41.85%
11.49%€47.55€29.74n/a15
Jul ’26€28.00
€37.05
+32.31%
11.41%€47.01€29.40€36.6016
Jun ’26€30.80
€38.89
+26.28%
10.61%€48.58€30.38€38.2016
May ’26€30.20
€39.68
+31.39%
11.37%€50.32€30.99€43.8017
Apr ’26€34.60
€41.84
+20.92%
11.24%€52.67€32.44€43.4016
Mar ’26€33.40
€41.97
+25.67%
11.76%€48.74€31.10€46.6017
Feb ’26€31.60
€42.94
+35.90%
10.24%€48.98€33.73€40.6017
Jan ’26€30.80
€42.98
+39.55%
9.91%€48.69€33.53€40.2017
Dec ’25€29.20
€42.29
+44.84%
9.72%€48.03€33.08€39.4018
Nov ’25€32.20
€42.43
+31.76%
11.58%€49.99€32.77€32.8018
Oct ’25€33.00
€41.14
+24.66%
12.20%€49.67€32.19€33.2018
Sep ’25€28.40
€40.42
+42.31%
13.57%€49.24€30.08€31.0018
Aug ’25€27.40
€45.83
+67.25%
13.31%€59.23€37.00€26.4017
Jul ’25€30.80
€47.83
+55.30%
10.76%€59.33€40.79€28.0016
€52.43
Fair Value
29.4% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/06 02:46
End of Day Share Price 2026/07/06 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

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.

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 Github.

Analyst Sources

H World Group Limited is covered by 35 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yanfang JiangBenchmark Company
Ronald LeungBofA Global Research
Sijie LinChina International Capital Corporation Limited