Hello Group Valuation

Is 1MO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1MO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1MO (€6.35) is trading below our estimate of fair value (€15.85)

Significantly Below Fair Value: 1MO is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1MO?

Key metric: As 1MO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1MO. This is calculated by dividing 1MO's market cap by their current earnings.
What is 1MO's PE Ratio?
PE Ratio6.1x
EarningsCN¥1.40b
Market CapCN¥8.57b

Price to Earnings Ratio vs Peers

How does 1MO's PE Ratio compare to its peers?

The above table shows the PE ratio for 1MO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
NWO New Work
30.7x32.3%€367.0m
G24 Scout24
34.9x14.8%€6.1b
YOC YOC
13.2x17.4%€52.5m
M8G Verve Group
14.4x22.0%€733.2m
1MO Hello Group
6.1x9.3%€1.2b

Price-To-Earnings vs Peers: 1MO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (23.3x).


Price to Earnings Ratio vs Industry

How does 1MO's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1MO 6.1xIndustry Avg. 14.8xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1MO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the European Interactive Media and Services industry average (14.8x).


Price to Earnings Ratio vs Fair Ratio

What is 1MO'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.

1MO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: 1MO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).


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 1MO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.35
€6.89
+8.5%
26.9%€12.01€5.08n/a11
Nov ’25€6.40
€6.96
+8.7%
27.4%€12.01€5.08n/a11
Oct ’25€6.65
€6.70
+0.7%
26.8%€11.78€4.98n/a12
Sep ’25€5.90
€6.96
+18.0%
33.9%€13.82€5.07n/a12
Aug ’25€6.10
€6.96
+14.1%
33.9%€13.82€5.07n/a12
Jul ’25€5.55
€7.03
+26.7%
33.9%€13.97€5.12n/a12
Jun ’25€5.05
€7.94
+57.2%
34.6%€13.84€5.08n/a12
May ’25€5.40
€8.46
+56.6%
31.6%€14.83€5.75n/a12
Apr ’25€5.70
€8.63
+51.5%
31.4%€14.73€5.71n/a12
Mar ’25€6.25
€10.47
+67.5%
33.9%€20.28€7.24n/a11
Feb ’25€5.30
€10.54
+98.9%
33.9%€20.35€7.26n/a11
Jan ’25€6.00
€10.50
+75.1%
33.8%€20.23€7.27n/a11
Dec ’24€5.75
€10.92
+90.0%
31.6%€20.51€7.48n/a11
Nov ’24€6.60
€11.27
+70.7%
32.3%€20.72€7.50€6.4013
Oct ’24€6.55
€11.27
+72.0%
32.3%€20.72€7.50€6.6513
Sep ’24€7.95
€11.00
+38.4%
31.8%€20.43€7.40€5.9014
Aug ’24€9.60
€10.62
+10.6%
30.9%€19.37€7.15€6.1014
Jul ’24€8.75
€11.05
+26.2%
31.6%€20.29€7.49€5.5514
Jun ’24€7.85
€10.52
+34.1%
33.6%€19.09€6.82€5.0514
May ’24€7.50
€10.21
+36.2%
34.4%€18.98€6.78€5.4015
Apr ’24€8.26
€9.83
+19.0%
39.9%€19.37€4.84€5.7014
Mar ’24€8.38
€9.72
+16.0%
40.7%€19.02€4.72€6.2515
Feb ’24€10.10
€9.51
-5.8%
41.2%€18.95€4.71€5.3015
Jan ’24€7.92
€9.32
+17.7%
41.7%€18.80€4.67€6.0015
Dec ’23€5.30
€8.11
+53.0%
54.1%€18.92€4.74€5.7515
Nov ’23€4.97
€8.13
+63.5%
55.2%€19.54€4.29€6.6016

Analyst Forecast: Target price is less than 20% higher than the current share price.


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