Luckin Coffee Valuation

Is 0A6U 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 0A6U when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 0A6U's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 0A6U's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A6U?

Key metric: As 0A6U is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A6U. This is calculated by dividing 0A6U's market cap by their current earnings.
What is 0A6U's PE Ratio?
PE Ratio	18.5x
Earnings	CN¥2.39b
Market Cap	CN¥44.17b

0A6U 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	1.5x
Enterprise Value/EBITDA	12.9x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 0A6U's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A6U 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	60.7x
GRG Greggs	20x	7.0%	UK£2.7b
SSPG SSP Group	167.5x	49.5%	UK£1.3b
MAB Mitchells & Butlers	9.9x	7.8%	UK£1.5b
ROO Deliveroo	45.4x	36.8%	UK£2.3b
0A6U Luckin Coffee	18.5x	25.5%	US$6.1b

Price-To-Earnings vs Peers: 0A6U is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (60.7x).

Price to Earnings Ratio vs Industry

How does 0A6U'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$2.38m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 0A6U is good value based on its Price-To-Earnings Ratio (18.5x) compared to the UK Hospitality industry average (20.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0A6U'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.

0A6U PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.5x
Fair PE Ratio	30.5x

Price-To-Earnings vs Fair Ratio: 0A6U is good value based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.