$NIO Inc.(NIO)$ About NIO Life

$NIO Inc.(NIO)$ About NIO Life. In my opinion, this part of NIO's business has not been given the proper valuation when calculating NIO's market cap.

If NIO Life were an independent company, which lifestyle goods company is it most similar to?

MUJI (Ryohin Keikaku Co. Ltd). MUJI's latest full year revenue: roughly $6B. Net profit: around 8%. Market cap: roughly $15B.

Now look at NIO Life. NIO revealed that NIO Life generated approximately ¥10B RMB in revenue (about $1.5B) last year and they were profitable.

If we value NIO Life similarly:

NIO Life latest full year revenue: about $1.5B (25% of MUJI). Net profit: assume similar. Market cap: around $3.8B (assume 25% of MUJI).

That's simply serving the NIO community alone, and this part of the business is going to grow as their customer base increases. There's also a possibility to expand beyond their customer base domestically and even globally.

This is one aspect of NIO that is highly undervalued in my view.

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