H World Group Valuation

Q: What is the Fair Price of 0A2I when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

0A2I ($35.68) is trading below our estimate of [[fair value]] ($53.38)

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

Below Fair Value: 0A2I ($35.68) is trading below our estimate of fair value ($53.38)

Significantly Below Fair Value: 0A2I is trading below fair value by more than 20%.

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 Ratio	21.3x
Earnings	CN¥3.81b
Market Cap	CN¥81.13b

0A2I 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 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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.7x
WTB Whitbread	21.4x	17.8%	UK£5.1b
IHG InterContinental Hotels Group	29.7x	10.7%	UK£15.0b
TRN Trainline	33.2x	14.3%	UK£1.8b
PPH PPHE Hotel Group	22.3x	31.6%	UK£488.9m
0A2I H World Group	21.3x	12.8%	US$11.2b

Price-To-Earnings vs Peers: 0A2I is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (26.7x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap
TAST Tasty	0.4x	-75.9%	US$2.74m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 0A2I is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the UK Hospitality industry average (20.7x).

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 Ratio	21.3x
Fair PE Ratio	28x

Price-To-Earnings vs Fair Ratio: 0A2I is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	US$35.68	US$45.50 +27.5%	11.6%	US$53.36	US$34.92	n/a	18
Nov ’25	US$37.14	US$46.01 +23.9%	11.6%	US$54.20	US$35.48	n/a	18
Oct ’25	US$38.23	US$45.58 +19.2%	12.2%	US$55.03	US$35.67	n/a	18
Sep ’25	US$30.26	US$44.67 +47.6%	13.6%	US$54.42	US$33.25	n/a	18
Aug ’25	US$28.52	US$49.61 +74.0%	13.3%	US$64.13	US$40.06	n/a	17
Jul ’25	US$33.19	US$51.37 +54.8%	10.8%	US$63.71	US$43.80	n/a	16
Jun ’25	US$37.32	US$51.51 +38.0%	10.8%	US$63.91	US$43.93	n/a	16
May ’25	US$37.65	US$52.13 +38.5%	11.9%	US$63.63	US$43.93	n/a	15
Apr ’25	US$38.34	US$52.78 +37.7%	12.2%	US$63.75	US$44.01	n/a	13
Mar ’25	US$36.00	US$53.09 +47.5%	13.2%	US$63.47	US$39.89	n/a	13
Feb ’25	US$31.87	US$52.78 +65.6%	13.3%	US$63.74	US$40.06	n/a	14
Jan ’25	US$33.48	US$55.20 +64.9%	10.1%	US$64.51	US$46.52	n/a	13
Dec ’24	US$36.06	US$55.25 +53.2%	9.4%	US$64.18	US$46.28	n/a	13
Nov ’24	US$35.38	US$55.22 +56.1%	9.4%	US$63.84	US$45.05	US$37.14	13
Oct ’24	US$39.82	US$56.50 +41.9%	8.6%	US$63.98	US$45.15	US$38.23	13
Sep ’24	US$42.11	US$56.23 +33.5%	8.6%	US$64.04	US$45.20	US$30.26	14
Aug ’24	US$45.84	US$55.97 +22.1%	9.6%	US$63.24	US$45.65	US$28.52	14
Jul ’24	US$39.05	US$55.91 +43.2%	9.6%	US$63.27	US$45.67	US$33.19	14
Jun ’24	US$37.82	US$56.42 +49.2%	9.7%	US$63.76	US$46.03	US$37.32	14
May ’24	US$46.05	US$58.10 +26.2%	7.6%	US$63.66	US$47.64	US$37.65	14
Apr ’24	US$46.91	US$58.21 +24.1%	7.5%	US$64.04	US$47.92	US$38.34	14
Mar ’24	US$47.37	US$51.94 +9.7%	9.8%	US$59.87	US$41.68	US$36.00	14
Feb ’24	US$47.59	US$50.71 +6.6%	10.8%	US$60.18	US$42.39	US$31.87	14
Jan ’24	US$42.88	US$46.59 +8.7%	7.6%	US$52.40	US$41.52	US$33.48	14
Dec ’23	US$37.01	US$44.18 +19.4%	7.5%	US$50.97	US$40.38	US$36.06	14
Nov ’23	US$29.63	US$42.70 +44.1%	9.6%	US$50.49	US$33.65	US$35.38	14

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