The Discounted Cash Flow (DCF) valuation of Momo Inc (MOMO) is 14.61 USD. With the latest stock price at 8.51 USD, the upside of Momo Inc based on DCF is 71.6%.

Is MOMO a buy or a sell?

Based on the latest price of 8.51 USD and our DCF valuation, Momo Inc (MOMO) is a buy. Buying MOMO stocks now will result in a potential gain of 71.6%.

	Range	Selected
WACC / Discount Rate	6.0% - 9.0%	7.5%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	12.08 - 19.11	14.61
Upside	42.0% - 124.6%	71.6%

8.51 USD

Stock Price

14.61 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

MOMO DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	10,563	10,356	10,609	10,997	11,217	11,568
% Growth	12%	-2%	2%	4%	2%	3%

Cost of goods sold	(6,447)	(6,321)	(6,475)	(6,712)	(6,847)	(7,061)
% of Revenue	61%	61%	61%	61%	61%	61%

Selling, G&A expenses	(1,837)	(1,801)	(1,845)	(1,913)	(1,951)	(2,012)
% of Revenue	17%	17%	17%	17%	17%	17%

Research & Development	(804)	(789)	(808)	(837)	(854)	(881)
% of Revenue	8%	8%	8%	8%	8%	8%

Net interest & other expenses	352	345	353	366	373	385
% of Revenue	3%	3%	3%	3%	3%	3%

Tax expense	(845)	(495)	(507)	(526)	(536)	(553)
Tax rate	46%	28%	28%	28%	28%	28%

Net profit	980	1,294	1,326	1,375	1,402	1,446
% Margin	9%	12%	12%	12%	12%	12%