HTHT Valuation

H World Group Ltd

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38.090

-0.13(-0.340%)1D

Overview
Forecast
Valuation
Earnings

HTHT Relative Valuation

HTHT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HTHT is overvalued; if below, it's undervalued.

Historical Valuation

H World Group Ltd (HTHT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 3.18 is considered Undervalued compared with the five-year average of 78.11. The fair price of H World Group Ltd (HTHT) is between 39.75 to 71.50 according to relative valuation methord. Compared to the current price of 38.22 USD , H World Group Ltd is Undervalued By 3.85%.

Relative Value

Fair Zone

39.75-71.50

Current Price：38.22

3.85%

Undervalued

19.17

Trailing

Forward

14.16

EV/EBITDA

H World Group Ltd. (HTHT) has a current EV/EBITDA of 14.16. The 5-year average EV/EBITDA is 30.12. The thresholds are as follows: Strongly Undervalued below -22.92, Undervalued between -22.92 and 3.60, Fairly Valued between 56.64 and 3.60, Overvalued between 56.64 and 83.16, and Strongly Overvalued above 83.16. The current Forward EV/EBITDA of 14.16 falls within the Historic Trend Line -Fairly Valued range.

17.26

EV/EBIT

H World Group Ltd. (HTHT) has a current EV/EBIT of 17.26. The 5-year average EV/EBIT is 25.89. The thresholds are as follows: Strongly Undervalued below -226.67, Undervalued between -226.67 and -100.39, Fairly Valued between 152.18 and -100.39, Overvalued between 152.18 and 278.46, and Strongly Overvalued above 278.46. The current Forward EV/EBIT of 17.26 falls within the Historic Trend Line -Fairly Valued range.

3.27

H World Group Ltd. (HTHT) has a current PS of 3.27. The 5-year average PS is 4.67. The thresholds are as follows: Strongly Undervalued below 1.37, Undervalued between 1.37 and 3.02, Fairly Valued between 6.33 and 3.02, Overvalued between 6.33 and 7.98, and Strongly Overvalued above 7.98. The current Forward PS of 3.27 falls within the Historic Trend Line -Fairly Valued range.

12.85

P/OCF

H World Group Ltd. (HTHT) has a current P/OCF of 12.85. The 5-year average P/OCF is 23.65. The thresholds are as follows: Strongly Undervalued below -7.45, Undervalued between -7.45 and 8.10, Fairly Valued between 39.21 and 8.10, Overvalued between 39.21 and 54.76, and Strongly Overvalued above 54.76. The current Forward P/OCF of 12.85 falls within the Historic Trend Line -Fairly Valued range.

15.24

P/FCF

H World Group Ltd. (HTHT) has a current P/FCF of 15.24. The 5-year average P/FCF is -44.52. The thresholds are as follows: Strongly Undervalued below -477.01, Undervalued between -477.01 and -260.77, Fairly Valued between 171.73 and -260.77, Overvalued between 171.73 and 387.97, and Strongly Overvalued above 387.97. The current Forward P/FCF of 15.24 falls within the Historic Trend Line -Fairly Valued range.

H World Group Ltd (HTHT) has a current Price-to-Book (P/B) ratio of 6.88. Compared to its 3-year average P/B ratio of 7.29 , the current P/B ratio is approximately -5.53% higher. Relative to its 5-year average P/B ratio of 7.77, the current P/B ratio is about -11.36% higher. H World Group Ltd (HTHT) has a Forward Free Cash Flow (FCF) yield of approximately 8.39%. Compared to its 3-year average FCF yield of 5.88%, the current FCF yield is approximately 42.53% lower. Relative to its 5-year average FCF yield of 3.31% , the current FCF yield is about 153.65% lower.

6.85

P/B

Median3y

7.29

Median5y

7.77

8.15

FCF Yield

Median3y

5.88

Median5y

3.31

Competitors Valuation Multiple

The average P/S ratio for HTHT's competitors is 3.86, providing a benchmark for relative valuation. H World Group Ltd Corp (HTHT) exhibits a P/S ratio of 3.27, which is -15.12% above the industry average. Given its robust revenue growth of 4.66%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Royal Caribbean Cruises Ltd

Marriott International Inc

Hilton Worldwide Holdings Inc

Performance Decomposition

Market capitalization of HTHT increased by 5.72% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.64 to 16.66.

The secondary factor is the Revenue Growth, contributed 4.66%to the performance.

Overall, the performance of HTHT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.66%

849.06M → 888.61M

Revenue Growth

31.80%

12.64 → 16.66

Margin Expansion

-30.74%

32.80 → 22.72

P/E Change

5.72%