Meituan (SEHK:3690): Examining Valuation as Diversification Fuels Fresh Investor Optimism

Meituan (SEHK:3690) has recently shown some movement in its share price, leading investors and market watchers to revisit the company’s fundamentals. With its diverse business portfolio, Meituan's shifts often spark questions about long-term value.

See our latest analysis for Meituan.

While Meituan’s share price has recovered modestly in recent weeks, rising 5.6% over the past 7 days, it is still well off last year’s levels, with a 1-year total shareholder return of -39.6%. This recent uptick suggests some renewed optimism, but long-term holders have yet to see a sustained turnaround.

If Meituan's latest moves have you thinking about where momentum is building next, broaden your research with our fast growing stocks with high insider ownership.

With valuations still far below past peaks and analysts seeing meaningful upside from current levels, the big question remains: is Meituan trading at a discount that investors should seize, or is the market already factoring in renewed growth?

Most Popular Narrative: 19.8% Undervalued

Meituan's current fair value estimate sits comfortably above its last close, suggesting the market might be overlooking the stock’s upside as confidence rebounds. Investors are watching closely to see if fundamental performance can close this gap.

Ongoing diversification into new business areas such as on-demand grocery delivery (Xiaoxiang Supermarket), international expansion (Keeta), and omnichannel retail positions Meituan to capture incremental revenue streams and reduce dependence on the saturated core food delivery market. This supports overall top-line resilience and long-term earnings potential.

Read the complete narrative.

Curious which secret financial projections are fueling that optimistic valuation? Just wait until you see the expected profit margins and future earnings multiples analysts are betting on. The narrative’s numbers could change your outlook on Meituan’s true worth.

Result: Fair Value of $129.65 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, investor optimism could quickly fade if fierce competition further erodes Meituan’s margins or if regulatory costs climb, which could challenge profit recovery in the near term.

Find out about the key risks to this Meituan narrative.

Build Your Own Meituan Narrative

If you have a different perspective on Meituan’s outlook or want to investigate the numbers for yourself, you can craft your own thesis in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Meituan.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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