NIO is a potential growth stock as the averageestimate of its revenue in current year is $9.58B and expected to be $15.22B next year by all the analysts.
The share price is currently priced at $22.62 which is 39.71% as compared to one year ago. The EV car manufacturer NIO has delivered 25,034 cars in Q4 FY21 based on its annual report which is keep growing since Q1 FY20 of 3.838 cars, at a rate of 552%.
From its managements views, it's expected to deliver a new products based on NIO Technology Platform 2.0 this year which in turn will accelerate the market expansion despite a toughglobal economic situation particularly the supply chain problem.
At today's market value of approximately $34B, which just 3 times analysts' 2022 revenue forecast of $10B. This is by far the cheapest prices-to-sales (P/S) multiple NIO has had as compared to Tesla which trades for 10.5 times this years' sales forecasts although Tesla is much further along than NiO and rightly deserves a higher P/S multiple. Therefore, it seems a valuation of 5 times sales for NIO stock could be a more appropriate valuation and that would put NIO's value at $50B for 2022 which is still much higher than its current market value. and that implies NIO stock could be worth morebased on yesterday's price.
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