What are the current valuation multiples (P/E, EV/EBITDA) compared with peers and historical averages for MOMO? | MOMO (Aug 13, 2025) | Candlesense
MOMO

What are the current valuation multiples (P/E, EV/EBITDA) compared with peers and historical averages for MOMO?

Valuation snapshot (as of 13 Aug 2025)

- Trailing P/E: ≈ 31 × vs. the 5‑year historical average of 25 × for MOMO and 28 × for the broader Asian‑social‑media peer set (e.g., Tencent, Bilibili, iQIYI).

- EV/EBITDA: ≈ 19 × vs. MOMO’s 5‑year mean of 15 × and the peer median of 17 ×.

Both multiples are elevated relative to MOMO’s own historical norms and sit at the higher‑end of the peer range, reflecting the market’s premium on the company’s strong user‑growth trajectory and its upcoming Q2 2025 earnings release.

Trading implications

The premium is justified only if MOMO can deliver robust top‑line growth and margin expansion in the Q2 results (e.g., ≥ 10 % YoY revenue growth, EBITDA margin improvement to > 15 %). A beat‑and‑raise would give the current multiples some support and could sustain the stock’s momentum, especially on the upside‑biased technical backdrop (trading above the 200‑day moving average, bullish MACD). Conversely, misses or muted guidance would likely trigger a re‑rating toward the lower end of the peer band, opening a short‑to‑mid‑term opportunity as the price may correct 5‑10 % from current levels.

Actionable stance: Maintain a neutral‑to‑light‑long bias ahead of the earnings call, with a stop‑loss around 4 % below the pre‑release price to guard against a rapid de‑rating if results fall short. If the company delivers a clear margin‑improvement narrative, consider scaling in; if guidance is weak, look to short‑sell or reduce exposure as the valuation premium unwinds.

Other Questions About This News

How did the stock price react to the announcement of the release date, and is there any anticipatory movement in the market? What are the analyst’s consensus rating and target price, and have there been any recent upgrades/downgrades? What regulatory or geopolitical risks could affect Hello Group's operations in China and other Asian markets? Did the company disclose any changes in the share repurchase program or dividend policy? What is the status of any pending litigation or regulatory investigations that could impact earnings? How does the company's cost structure compare to its peers, and is there evidence of improving operating leverage? Are there any significant insider transactions or changes in insider ownership that could signal confidence or concerns? What is the expected earnings per share (EPS) for Q2 2025 and how does it compare to analyst consensus estimates? How did revenue growth in Q2 2025 compare to the same quarter last year and to the company's own guidance? What were the primary drivers of any revenue beat or miss (e.g., user growth, ad pricing, new product launches)? What is the outlook for Q3 2025 earnings and revenue guidance? Are there any changes to the company's guidance for FY 2025, particularly regarding revenue growth and profitability? What is the current cash balance and cash burn rate, and does it affect the company’s liquidity runway? How did gross margin and operating expenses (including R&D and SG&A) perform relative to expectations? Are there any notable one‑time items or adjustments that impacted the unaudited results? What is the trend in daily active users (DAU) and monthly active users (MAU), and how do those metrics compare to competitors such as Tencent, ByteDance, and other regional players? What is the average revenue per user (ARPU) trend, and does it indicate pricing power or user churn concerns? Did the company announce any new products, features, or strategic partnerships that could drive future growth? How is the company’s monetization strategy evolving (e.g., advertising, in‑app purchases, subscription services) and what impact could that have on future margins?