Hello Group Inc.

DB:1MO Stock Report

Market Cap: €1.2b

Hello Group Valuation

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

Below Fair Value: 1MO (€7) is trading above our estimate of fair value (€3.26)

Significantly Below Fair Value: 1MO is trading above our estimate of fair value.

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 Ratio7.1x
EarningsCN¥1.30b
Market CapCN¥9.23b

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 Average25.7x
NWO New Work
31.4x32.3%€375.4m
G24 Scout24
34.9x15.0%€6.1b
YOC YOC
14.1x20.1%€53.2m
SAX Ströer SE KGaA
22.4x28.0%€2.6b
1MO Hello Group
7.1x6.8%€1.3b

Price-To-Earnings vs Peers: 1MO is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (25.7x).

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 7.1xIndustry Avg. 14.1xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1MO is good value based on its Price-To-Earnings Ratio (7.1x) compared to the European Interactive Media and Services industry average (14.1x).

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 Ratio7.1x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: 1MO is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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€7.00
€7.71
+10.2%
25.1%€12.50€5.64n/a10
Dec ’25€6.25
€6.89
+10.2%
26.8%€11.99€5.08n/a11
Nov ’25€6.40
€6.96
+8.7%
27.3%€11.99€5.08n/a11
Oct ’25€6.65
€6.70
+0.7%
26.8%€11.77€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€7.48€6.2511
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 13:47
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

Hello Group Inc. is covered by 30 analysts. 10 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
Yiwen ZhangBOCI Research Ltd.
Yiqun ChenBOCI Research Ltd.