Atour Lifestyle Holdings (NasdaqGS:ATAT): Assessing Valuation After Strong Results, Dividend Boost, and Raised Guidance

Atour Lifestyle Holdings (NasdaqGS:ATAT) just released its third quarter results, reporting higher revenue and net income compared to last year. The company also raised its full-year outlook and declared a second cash dividend.

See our latest analysis for Atour Lifestyle Holdings.

After climbing on the back of upbeat earnings, a dividend announcement, and plans for accelerated expansion, Atour Lifestyle Holdings has attracted plenty of market attention. The latest share price closed at $40.43, delivering a robust year-to-date share price return of nearly 50% and an impressive 57.7% total shareholder return over the past year. In short, the stock’s momentum is building as growth initiatives and shareholder rewards catch investors’ eyes.

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Yet with the stock advancing nearly 50% this year and full-year growth forecasts now public, the critical question for investors is whether Atour shares still offer real value or if future gains are already reflected in the price.

Most Popular Narrative: 13.2% Undervalued

The most widely followed narrative suggests Atour’s fair value sits notably above its latest closing price, drawing attention to the gap and stirring debate over the growth fueling such optimism.

The company’s focus on differentiated, high-quality lifestyle and experiential brands (such as SAVHE and Atour Light), alongside strong product innovation, aligns with shifting consumer preferences toward experiential and themed stays. This supports premium pricing, higher RevPAR, and brand loyalty, directly enhancing top-line revenue and margins.

Read the complete narrative.

Want a glimpse into the financial assumptions shaping this bold upside? The narrative hinges on fast-rising margins and a premium pricing playbook. Discover exactly which aggressive growth factors analysts are betting on to justify this value gap.

Result: Fair Value of $46.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, possible missteps in rapid hotel expansion or quality control across franchisees could undermine growth and put recent margin gains at risk.

Find out about the key risks to this Atour Lifestyle Holdings narrative.

Another View: What Do Earnings Ratios Suggest?

Looking at the valuation through an earnings lens, Atour Lifestyle trades at 26.7 times earnings. This is higher than the US hospitality industry average of 21.3 times, but below peer averages at 32.5 times. While this premium suggests investor optimism, it also highlights valuation risk if growth expectations are not met. What will happen if market sentiment or industry trends shift?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Atour Lifestyle Holdings Narrative

If the current analysis does not align with your perspective, you can quickly explore Atour’s data to build your own view in just a few minutes using Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Atour Lifestyle Holdings.

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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.