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Meituan (SEHK:3690) has drawn investor attention after a recent share price move, with the stock closing at HK$82.70. The shift comes against a backdrop of mixed shorter term and longer term returns.
See our latest analysis for Meituan.
Recent trading has been choppy, with the 1-day share price return down 3.5% and the year-to-date share price return down 20.9%, while the 1-year total shareholder return has declined 37.1%. This points to fading momentum after a relatively flat 90-day share price move.
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So with Meituan’s recent share price weakness, solid reported revenue growth and an annual net loss, are you looking at an undervalued growth story, or a stock where the market already prices in what comes next?
Price to Sales of 1.2x: Is it justified?
Meituan currently trades on a P/S of 1.2x, which our checks flag as good value against peers on one measure, yet expensive against the wider Hong Kong Hospitality industry.
The P/S ratio compares the company’s HK$82.70 share price with its revenue, instead of earnings, which is useful here because Meituan is still loss making. For a business with HK$364.9b in revenue and an annual net loss of HK$23.4b, P/S can give you a clearer view of how the market is weighing sales against the absence of profits.
On a peer comparison, Meituan’s 1.2x P/S sits well below the 2.8x average, which suggests the stock is priced more cautiously than many direct comparables. At the same time, the ratio is above the Hong Kong Hospitality industry average of 0.9x, and below the estimated fair P/S of 3.5x that our model identifies as a benchmark level.
Explore the SWS fair ratio for Meituan
Result: Price-to-Sales of 1.2x (UNDERVALUED)
However, the company’s annual net loss of HK$23.4b and multi year total shareholder return declines could keep sentiment fragile if the momentum in revenue growth slows.
Find out about the key risks to this Meituan narrative.
Another view: DCF points to deeper undervaluation
While the 1.2x P/S suggests caution against the wider Hong Kong Hospitality sector, the SWS DCF model indicates a larger value gap. With Meituan trading at HK$82.70 versus an estimated future cash flow value of HK$212.99, the model presents the stock as heavily undervalued. So which signal do you give more weight to?
Look into how the SWS DCF model arrives at its fair value.
3690 Discounted Cash Flow as at May 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Meituan for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 233 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
If this combination of weakness and potential seems difficult to interpret, take a moment to review the underlying numbers yourself and decide what really matters, then check 2 key rewards and 1 important warning sign
Looking for more investment ideas?
If Meituan is on your radar, do not stop there; widening your watchlist can help you spot opportunities you might otherwise miss.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 3690.HK.
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