H World Group Limited logo HTHT - H World Group Limited

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 11
HOLD 5
SELL 3
STRONG
SELL
0
| PRICE TARGET: $62.40 DETAILS
HIGH: $62.40
LOW: $62.40
MEDIAN: $62.40
CONSENSUS: $62.40
UPSIDE: 51.40%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 52.5% below fair value
Current Price $41.22
Bear Case $53.43 29.6% upside ($53.43 - $41.22) / $41.22 = 29.6% 9% stage 1 growth, 11% discount
Fair Value $86.74 110.5% upside ($86.74 - $41.22) / $41.22 = 110.5% 14% stage 1 growth, 11% discount
Bull Case $123.20 198.9% upside ($123.20 - $41.22) / $41.22 = 198.9% 19% stage 1 growth, 11% discount

Adjust Assumptions

14.3%
11.0%
3.0%

Key Value Driver

FCF growth rate (14% base case)

Terminal Value % of EV 42%
Implied Market Multiple 14.5x
Market is pricing in (growth) 4.6% vs our 14.3% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $62.40 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $86.74 per share.

Warnings

Wall Street's average price target is $62.40 (from 19 analysts). Our estimate is 52% above the consensus -- consider that gap carefully.
Financial statements were converted from CNY into USD using USDCNY at 0.1478 USD per CNY.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions