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Pop Mart International Group (SEHK:9992) After LABUBU Buzz Looks About Fairly Valued

Simply Wall St · 1d ago

Pop Mart International Group (SEHK:9992) drew investor attention after its shares climbed nearly 7% following strong demand for the upcoming LABUBU World Cup special edition and highly successful pre-orders for "The Monsters" series.

See our latest analysis for Pop Mart International Group.

Those LABUBU themed launches and the increased stake from Duan Yongping have arrived after a mixed stretch for Pop Mart International Group, with the share price up 8.56% over the past week but down 15.28% year to date, while the three year total shareholder return is very large.

If this kind of momentum has you thinking about what else is moving, it could be a good time to widen your watchlist with 106 top founder-led companies

So is Pop Mart International Group’s latest jump simply enthusiasm around LABUBU and a high profile shareholder, or does it better reflect what you are actually paying for the underlying toy business on today’s valuation multiples?

Price to earnings of 14.5x for Pop Mart International Group: Is it justified?

On simple earnings terms, Pop Mart International Group trades on a P/E of 14.5x, which sits slightly below the peer average of 15.9x yet above the wider Hong Kong Specialty Retail industry at 9.5x.

The P/E multiple compares the company’s share price with its earnings per share, so it effectively shows how much investors are paying today for each unit of current profit. For a consumer toy business like Pop Mart International Group, this is a useful shorthand for how the market is weighing its earnings track record, future growth forecasts and perceived risk.

Here, the picture is mixed. On one side, Pop Mart International Group is described as good value relative to its own estimated fair P/E of 15.5x, and its recent earnings growth has been very strong compared with both its own five year history and the Specialty Retail industry. On the other side, the stock is considered expensive versus the broader industry average, and its earnings growth is forecast to be more moderate rather than very rapid. Together, that suggests the current P/E sits in a range that the market could reasonably move toward if expectations align with that fair multiple estimate.

Against the rest of the Hong Kong Specialty Retail industry, the 14.5x P/E stands at a clear premium, implying investors are willing to pay more for Pop Mart International Group’s earnings than for the average peer. Yet, compared with the peer group’s 15.9x average and the estimated fair P/E of 15.5x, the stock screens as slightly cheaper than where comparable companies trade and where the fair ratio analysis suggests it could sit.

Explore the SWS fair ratio for Pop Mart International Group

Result: Price-to-earnings of 14.5x (ABOUT RIGHT)

However, the recent share price fall of 32.26% over the past year and reliance on a single pop toy segment mean that sentiment around Pop Mart International Group can quickly shift.

Find out about the key risks to this Pop Mart International Group narrative.

Another View: What the SWS DCF Model Says About Pop Mart International Group

While the 14.5x P/E for Pop Mart International Group looks roughly in line with its fair ratio, the SWS DCF model points in a different direction. With the stock at HK$163.6 versus an estimated future cash flow value of HK$443.13, this framework suggests it could be materially undervalued. The question is whether you trust current earnings multiples or the long term cash flow picture more.

Look into how the SWS DCF model arrives at its fair value.

9992 Discounted Cash Flow as at Jul 2026
9992 Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pop Mart International Group 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 228 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 mix of enthusiasm and caution around Pop Mart International Group leaves you undecided, take a moment to review the data yourself and form a clear stance. Then weigh the upside and downside using the 3 key rewards and 1 important warning sign.

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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.