H World Group Limited

LSE:0A2I Stock Report

Market Cap: US$10.3b

H World Group Valuation

Is 0A2I 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 0A2I when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A2I ($33.23) is trading above our estimate of fair value ($33.22)

Significantly Below Fair Value: 0A2I is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A2I?

Key metric: As 0A2I is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A2I. This is calculated by dividing 0A2I's market cap by their current earnings.
What is 0A2I's PE Ratio?
PE Ratio20.1x
EarningsCN¥3.74b
Market CapCN¥75.12b

Price to Earnings Ratio vs Peers

How does 0A2I's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A2I vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
WTB Whitbread
21.4x14.2%UK£5.1b
IHG InterContinental Hotels Group
31.6x11.0%UK£15.9b
TRN Trainline
34.3x17.6%UK£1.9b
PPH PPHE Hotel Group
25.2x27.0%UK£553.7m
0A2I H World Group
20.1x14.5%US$10.3b

Price-To-Earnings vs Peers: 0A2I is good value based on its Price-To-Earnings Ratio (20.1x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does 0A2I's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.38m
No more companies available in this PE range
0A2I 20.1xIndustry Avg. 19.3xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A2I is expensive based on its Price-To-Earnings Ratio (20.1x) compared to the UK Hospitality industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0A2I'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.

0A2I PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.1x
Fair PE Ratio28.4x

Price-To-Earnings vs Fair Ratio: 0A2I is good value based on its Price-To-Earnings Ratio (20.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.4x).

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 0A2I forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$33.23
US$44.62
+34.3%
9.9%US$50.52US$34.80n/a17
Dec ’25US$32.22
US$44.77
+39.0%
9.7%US$50.83US$35.01n/a18
Nov ’25US$37.14
US$46.00
+23.9%
11.6%US$54.20US$35.53n/a18
Oct ’25US$38.23
US$45.53
+19.1%
12.2%US$54.98US$35.63n/a18
Sep ’25US$30.26
US$44.67
+47.6%
13.6%US$54.42US$33.25n/a18
Aug ’25US$28.52
US$49.61
+74.0%
13.3%US$64.13US$40.06n/a17
Jul ’25US$33.19
US$51.37
+54.8%
10.8%US$63.71US$43.80n/a16
Jun ’25US$37.32
US$51.51
+38.0%
10.8%US$63.91US$43.93n/a16
May ’25US$37.65
US$52.13
+38.5%
11.9%US$63.63US$43.93n/a15
Apr ’25US$38.34
US$52.78
+37.7%
12.2%US$63.75US$44.01n/a13
Mar ’25US$36.00
US$53.09
+47.5%
13.2%US$63.47US$39.89n/a13
Feb ’25US$31.87
US$52.78
+65.6%
13.3%US$63.74US$40.06n/a14
Jan ’25US$33.48
US$55.20
+64.9%
10.1%US$64.51US$46.52n/a13
Dec ’24US$36.06
US$55.25
+53.2%
9.4%US$64.18US$46.28US$32.2213
Nov ’24US$35.38
US$55.22
+56.1%
9.4%US$63.84US$45.05US$37.1413
Oct ’24US$39.82
US$56.50
+41.9%
8.6%US$63.98US$45.15US$38.2313
Sep ’24US$42.11
US$56.23
+33.5%
8.6%US$64.04US$45.20US$30.2614
Aug ’24US$45.84
US$55.97
+22.1%
9.6%US$63.24US$45.65US$28.5214
Jul ’24US$39.05
US$55.91
+43.2%
9.6%US$63.27US$45.67US$33.1914
Jun ’24US$37.82
US$56.42
+49.2%
9.7%US$63.76US$46.03US$37.3214
May ’24US$46.05
US$58.10
+26.2%
7.6%US$63.66US$47.64US$37.6514
Apr ’24US$46.91
US$58.21
+24.1%
7.5%US$64.04US$47.92US$38.3414
Mar ’24US$47.37
US$51.94
+9.7%
9.8%US$59.87US$41.68US$36.0014
Feb ’24US$47.59
US$50.71
+6.6%
10.8%US$60.18US$42.39US$31.8714
Jan ’24US$42.88
US$46.59
+8.7%
7.6%US$52.40US$41.52US$33.4814
Dec ’23US$37.01
US$44.18
+19.4%
7.5%US$50.97US$40.38US$36.0614

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 09:22
End of Day Share Price 2024/12/18 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

H World Group Limited is covered by 41 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
Yiu Kei TungBNP Paribas Securities (Asia)
Ka Ho LiBOCI Research Ltd.