HERE Here Group Limited
$1.89
Stable Earnings Power 65%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 87.7% below fair value

You pay $1.89
Bear $12.31
Fair $15.39
Bull $18.47
Bear $12.31 +551.4% $0.97 × 13x P/E
Fair $15.39 +714.3% $0.97 × 16x P/E
Bull $18.47 +877.1% $0.97 × 19x P/E

Adjust Assumptions

15.9x
0.97$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 1.9x

Summary

Applying a 16x P/E to adjusted EPS of $0.97, the base-case value is $15.39 per share.

Warnings

Financial statements were converted from CNY into USD using USDCNY at 0.1491 USD per CNY.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples