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H World Group Limited (H1TH34) Fair Value & Analysis

Consumer Cyclical · BR · Market cap R$66.9B

HW H World Group Limited H1TH34 · SA
PriceR$54.45
Fair ValueR$55.70
Upside+2.3%
Quality73/100
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Strengths

Healthy Growth
Solidly profitable · 19.3% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Healthy Growth
Solidly profitable · 19.3% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Wide moat 79/100
Evidence: High Range R$40.49 – R$70.91 Share as image

Fair value as of: Aug 19, 2026

From 26 valuation models · updated 2 days ago

Fair value updated Aug 19, 2026, revised from R$55.44 to R$55.70 (+0.5%) since Aug 13, 2026. Share price +0.2% over the past month.

A solid business, currently priced close to our fair value.

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What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from R$40.49 (bear) to R$70.91 (bull), base R$55.70. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 73/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

R$68.09 R$29.31 Fair Value R$55.70 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range R$29.31 – R$68.09 · fair‑value band R$40.49 – R$70.91 · the R$54.45 price screens below the R$55.70 fair value. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

H World Group Limited (H1TH34) currently trades at R$54.45, while our model-based Fair Value estimate is R$55.70, implying the stock looks roughly 2.3% fairly valued today. The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, H World Group Limited generated revenue of R$25.9B at a net margin of 19.3%. Revenue grew 11.1% year over year. It earns a return on equity of 46.4%. Net debt stands at R$6.3B. Fundamentals as of Aug 19, 2026

Our scenario range runs from R$40.49 (bear case) to R$70.91 (bull case); at R$54.45, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -56% fair-value upside, at 2%, H1TH34 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R$89.81 R$157.88 R$277.60 80
Residual Income R$24.45 R$29.15 R$118.82 76
Rev-Margin DCF R$45.81 R$65.44 R$91.88 74
All 26 models by family
DCF Models
FCF DCF R$91.25 R$167.99 R$308.44 38
Owner Earnings R$68.72 R$124.68 R$227.10 31
5Y Revenue Exit R$45.81 R$64.99 R$89.50 39
5Y EBITDA Exit R$72.03 R$121.11 R$183.58 41
5Y P/E Exit R$77.88 R$133.63 R$198.98 38
10Y Revenue Exit R$59.43 R$83.48 R$118.20 36
10Y EBITDA Exit R$77.70 R$125.49 R$199.90 37
10Y P/E Exit R$81.64 R$134.87 R$213.27 35
Earnings-Based
Graham-Dodd R$28.08 R$147.39 R$203.97 54
Lynch FV R$40.47 R$57.82 R$75.16 50
PEG = 1.0 R$40.47 R$57.82 R$75.16 46
EPV R$49.76 R$56.71 R$62.80 59
Dividend Discount
Gordon GGM R$29.16 R$60.64 R$96.19 70
DDM Multi-Stage R$29.16 R$51.13 R$63.64 61
Multiples
P/E Multiple R$68.14 R$90.85 R$113.57 63
P/S Multiple R$18.52 R$24.69 R$30.86 58
P/B Multiple R$31.23 R$41.64 R$52.04 55
EV/EBIT R$82.89 R$107.84 R$132.78 53
EV/EBITDA R$67.14 R$86.84 R$106.53 54
EV/Revenue R$25.34 R$32.74 R$40.15 43
Asset-Based
NCAV (Graham) R$5.20 R$6.97 R$10.41 50
Growth DCF
Growth DCF R$89.81 R$157.88 R$277.60 80
Rev-Margin DCF R$45.81 R$65.44 R$91.88 74
Economic Profit
Residual Income R$24.45 R$29.15 R$118.82 76
ROIC Compounder R$51.21 R$60.11 R$69.11 72
Growth Earnings
Growth-Adj P/E R$61.70 R$88.15 R$114.59 68

Widest divergence: DCF Models (R$124.68) versus Asset-Based (R$6.97). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) R$25.9B
Revenue growth (YoY) +11.1%
Net margin 19.3%
Return on equity 46.4%
Free cash flow R$7.5B FY2025
P/E ratio 18.5
More key figures
Operating margin 24.8%
EPS (TTM) R$2.95
EPS growth (YoY) -7.1%
Net debt R$6.3B FY2022

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 70 · Market factors (momentum, volatility) 55

Profitability 61
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 92
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 54
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, …

Full company description

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

H World Group Limited reported revenue of R$25.3B in FY2025 versus R$12.8B in FY2021, a compound +18.6%/yr. Reported net income was R$5.1B in FY2025.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$25.3B
Latest YoY
+5.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.2%
Revenue +18.6%/yr
FY21 R$12.8B
FY22 R$13.9B
FY23 R$21.9B
FY24 R$23.9B
FY25 R$25.3B
Net income
FY21 −R$465M
FY22 −R$1.8B
FY23 R$4.1B
FY24 R$3.0B
FY25 R$5.1B

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Cite: Fair Value Calculator (2026). "H World Group Limited Fair Value". https://www.fairvalue-calculator.com/stock/H1TH34

Peer Group

Lodging · 167 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 73 · Top 25%
Fair Value upside +2% · Above median
Return on equity (TTM) 46% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 25% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 5.1% · Top 25%
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 18.5× · Cheaper than median
P/B 5.22× · Pricier than 75% of peers
P/S (TTM) 2.58× · Pricier than median
P/FCF 1.7× · Pricier than median
EV/EBITDA 6.7× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE36 · sector 0
FUTURE56 · sector 20
PAST100 · sector 11
HEALTH98 · sector 91
DIVIDEND100 · sector 25

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Lodging stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $354.58 $132.35 -63%
Hilton Worldwide Holdings HLT $322.53 $122.02 -62%
InterContinental Hotels Group IHG $161.82 $85.18 -47%
Hyatt Hotels Corporation H $178.37 $46.78 -74%
The Indian Hotels Company INDHOTEL ₹723.35 ₹253.67 -65%
Hanjin Kal, 180640 118,200 KRW 36,890 KRW -69%
Jabal Omar Development Company 4250 16.00 SAR 11.64 SAR -27%
Makkah Construction and Development Company 4100 81.95 SAR 36.25 SAR -56%
Minor International Public Company MINT 22.90 THB 32.82 THB +43%
Shanghai Jin Jiang International Hotels Co 600754 ¥19.48 ¥22.37 +15%

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Frequently asked questions

Is H World Group Limited (H1TH34) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of R$55.70 versus a price of R$54.45, about +2% (fairly valued).
What is the fair value of H1TH34?
Our model-based fair value for H World Group Limited is R$55.70 (as of Aug 19, 2026), built from audited fundamentals. The current price: R$54.45.
What is the quality score of H1TH34?
H World Group Limited has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of H World Group Limited (H1TH34)?
H World Group Limited reported trailing-twelve-month revenue of about R$25.9B (latest available figure, as of Aug 19, 2026).
What is the net profit margin of H1TH34?
The net profit margin of H World Group Limited is about 19.3%, meaning it keeps roughly 19.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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