Luckin Coffee Inc.
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$33.98
FAIR PRICE
$36.86
MARGIN
$2.88
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FPI RATING
High-quality fundamentals and low debt levels, but weak profitability margins.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$29.49
Fair price × 0.80
DISTANCE
13.2%
Price to entry level
At the current price of $33.98, LKNCY trades 13.2% above the conservative entry level of $29.49. This entry level represents a 20% margin of safety below the calculated fair price of $36.86 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate LKNCY's fair price
Luckin Coffee Inc.'s fair price of $36.86 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $33.98, LKNCY trades 8.5% below its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting LKNCY's risk profile.
RELATIVE · 30%
Comparing LKNCY's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for LKNCY, weighted by recency and analyst accuracy.
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What is the fair price of LKNCY?+
Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for Luckin Coffee Inc. is $36.86. At the current market price of $33.98, LKNCY trades 8.5% below its calculated fair value.
Is LKNCY overvalued or undervalued?+
Luckin Coffee Inc. is currently fair based on our valuation model. The stock trades at $33.98, which is 8.5% below the fair price of $36.86. The P/E ratio of 2.8x is a key metric in the valuation.
What is the margin of safety for LKNCY?+
With a 20% margin of safety applied to the fair price of $36.86, the conservative entry level for LKNCY is $29.49. At the current market price of $33.98, the stock trades 13.2% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is LKNCY's fair price updated?+
We update fair price calculations for LKNCY daily after market close. The current fair price of $36.86 incorporates the latest market data and sector multiples.
What factors affect LKNCY's fair price calculation?+
LKNCY's fair price of $36.86 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 2.8x, ROE of 24.6%.
Is LKNCY a good buy right now?+
At $33.98, LKNCY trades 8.5% below our fair value estimate of $36.86. The stock is currently fair. ROE stands at 24.6% (strong). Fair Price Index provides valuation data — always do your own research before investing.
Does LKNCY pay dividends?+
LKNCY does not currently pay a dividend.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.