Meituan Valuation

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

Below Fair Value: MPNG.Y ($42.01) is trading below our estimate of fair value ($96.09)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MPNG.Y?

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

The above table shows the Price to Earnings ratio for MPNG.Y. This is calculated by dividing MPNG.Y's market cap by their current earnings.
What is MPNG.Y's PE Ratio?
PE Ratio	40.3x
Earnings	CN¥22.53b
Market Cap	CN¥907.87b

MPNG.Y 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	2.7x
Enterprise Value/EBITDA	35.5x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does MPNG.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for MPNG.Y 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	34.8x
SBUX Starbucks	30.4x	10.5%	US$115.5b
CMG Chipotle Mexican Grill	57.6x	15.5%	US$84.5b
MCD McDonald's	25.8x	6.6%	US$212.3b
YUM Yum! Brands	25.4x	8.0%	US$38.2b
MPNG.Y Meituan	40.2x	28.6%	US$974.3b

Price-To-Earnings vs Peers: MPNG.Y is expensive based on its Price-To-Earnings Ratio (40.2x) compared to the peer average (34.8x).

Price to Earnings Ratio vs Industry

How does MPNG.Y's PE Ratio compare vs other companies in the US Hospitality Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
GDHG Golden Heaven Group Holdings	3.9x	n/a	US$6.25m
THRS.F Agility Real Estate	1.7x	n/a	US$2.05m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MPNG.Y is expensive based on its Price-To-Earnings Ratio (40.2x) compared to the US Hospitality industry average (24.8x).

Price to Earnings Ratio vs Fair Ratio

What is MPNG.Y'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.

MPNG.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	40.3x
Fair PE Ratio	40.5x

Price-To-Earnings vs Fair Ratio: MPNG.Y is good value based on its Price-To-Earnings Ratio (40.2x) compared to the estimated Fair Price-To-Earnings Ratio (40.5x).

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.