MOMO Valuation

Hello Group Inc

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6.710

-0.05(-0.740%)1D

MOMO Relative Valuation

MOMO'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, MOMO is overvalued; if below, it's undervalued.

Historical Valuation

Hello Group Inc (MOMO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.30 is considered Undervalued compared with the five-year average of 7.06. The fair price of Hello Group Inc (MOMO) is between 7.37 to 10.23 according to relative valuation methord. Compared to the current price of 6.79 USD , Hello Group Inc is Undervalued By 7.77%.

Relative Value

Fair Zone

7.37-10.23

Current Price：6.79

7.77%

Undervalued

7.30

Trailing

Forward

3.18

EV/EBITDA

Hello Group Inc. (MOMO) has a current EV/EBITDA of 3.18. The 5-year average EV/EBITDA is 3.40. The thresholds are as follows: Strongly Undervalued below -0.24, Undervalued between -0.24 and 1.58, Fairly Valued between 5.22 and 1.58, Overvalued between 5.22 and 7.05, and Strongly Overvalued above 7.05. The current Forward EV/EBITDA of 3.18 falls within the Historic Trend Line -Fairly Valued range.

3.26

EV/EBIT

Hello Group Inc. (MOMO) has a current EV/EBIT of 3.26. The 5-year average EV/EBIT is 3.25. The thresholds are as follows: Strongly Undervalued below -0.20, Undervalued between -0.20 and 1.53, Fairly Valued between 4.98 and 1.53, Overvalued between 4.98 and 6.70, and Strongly Overvalued above 6.70. The current Forward EV/EBIT of 3.26 falls within the Historic Trend Line -Fairly Valued range.

48.17

Hello Group Inc. (MOMO) has a current PS of 48.17. The 5-year average PS is 1.21. The thresholds are as follows: Strongly Undervalued below -6.44, Undervalued between -6.44 and -2.61, Fairly Valued between 5.04 and -2.61, Overvalued between 5.04 and 8.87, and Strongly Overvalued above 8.87. The current Forward PS of 48.17 falls within the Strongly Overvalued range.

6.55

P/OCF

Hello Group Inc. (MOMO) has a current P/OCF of 6.55. The 5-year average P/OCF is 5.93. The thresholds are as follows: Strongly Undervalued below 2.61, Undervalued between 2.61 and 4.27, Fairly Valued between 7.60 and 4.27, Overvalued between 7.60 and 9.26, and Strongly Overvalued above 9.26. The current Forward P/OCF of 6.55 falls within the Historic Trend Line -Fairly Valued range.

19.13

P/FCF

Hello Group Inc. (MOMO) has a current P/FCF of 19.13. The 5-year average P/FCF is 8.11. The thresholds are as follows: Strongly Undervalued below -1.36, Undervalued between -1.36 and 3.38, Fairly Valued between 12.84 and 3.38, Overvalued between 12.84 and 17.58, and Strongly Overvalued above 17.58. The current Forward P/FCF of 19.13 falls within the Strongly Overvalued range.

Hello Group Inc (MOMO) has a current Price-to-Book (P/B) ratio of 0.70. Compared to its 3-year average P/B ratio of 0.85 , the current P/B ratio is approximately -18.05% higher. Relative to its 5-year average P/B ratio of 0.93, the current P/B ratio is about -24.68% higher. Hello Group Inc (MOMO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 15.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 15.36% , the current FCF yield is about -100.00% lower.

0.70

P/B

Median3y

0.85

Median5y

0.93

14.78

FCF Yield

Median3y

15.47

Median5y

15.36

Competitors Valuation Multiple

The average P/S ratio for MOMO's competitors is 23.18, providing a benchmark for relative valuation. Hello Group Inc Corp (MOMO) exhibits a P/S ratio of 48.17, which is 107.83% above the industry average. Given its robust revenue growth of -2.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Magic Software Enterprises Ltd

Performance Decomposition

Market capitalization of MOMO increased by 0.45% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.16 to 9.95.

The secondary factor is the Revenue Growth, contributed -2.64%to the performance.

Overall, the performance of MOMO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-2.64%

2.69B → 2.62B

Revenue Growth

-135.99%

14.78 → -5.32

Margin Expansion

139.08%

4.16 → 9.95

P/E Change

0.45%