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Fair valuation
Investor summaryBearish
The author argues NIO's valuation is fair or slightly overvalued vs BYD and Toyota, dismissing claims of it being undervalued.
Bear points
- NIO is valued at 1/7 of BYD, which is 1/3 of Toyota, suggesting its current market cap is fairly priced.
- Compared to BYD, NIO might even be slightly overvalued despite the China stock discount.
Post body
People here complain all the time that the stock is undervalued, that the price is manipulated, ...
I don't really understand this amd I am wondering what a fair price is for these people?
At the moment Nio is valued at 1/7 of Byd valuation. Byd is valued at 1/3rd of Toyota though.
So for me the valuation seems pretty fair, maybe even a little overvalued comparing to byd. Of course there is a china stock effect, and byd is likely worth at least half of Toyota's valuation or even more.
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