BYD is Considered Undervalued
$BYD Co., Ltd.(BYDDF)$ is enjoying a mini-resurgence throughout the holidays.
Share price is up by 4.4% since Christmas.
While it has crashed quite severely from its year-peak of HKD130, its recent sales for 2025 has shown that the company is indeed, top of the world.
It delivered a record total of 4.6 million cars for 2025, far surpassing Tesla’s projected deliveries of 1.64 million cars.
As the dust settles, now is a good time to evaluate BYD’s valuations and see whether it’s a good time to enter.
Firstly, BYD is now trading at a price-to-earnings ratio of about 23 times, which is considered relatively high compared to its peers’ average of 8.9 times.
Source: SimplyWallSt
However, we need to take into account that the industry is now in a fierce price war cycle, that has decimated margins and profits. So, many investors have been selling Chinese EV stocks to cut back on losses.
BYD certainly has suffered, but not as much. Its high PER indicates that investors are still bullish on its market position in China, and prospects internationally.
It has announced that it aims to sell 1.6 million cars internationally in 2026 (about 50% increase from 2025)
From a discounted cash flow perspective, BYD is considered undervalued by 15%.
Source: SimplyWallSt
Analysts are now also targeting HKD133.23, with an implied potential upside of +40%.
Source: SimplyWallSt
Hope the above is fruitful for you all..
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