Li Auto Valuation

Is LI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LI ($28.42) is trading below our estimate of fair value ($34.39)

Significantly Below Fair Value: LI is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LI?

Other financial metrics that can be useful for relative valuation.

LI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA16.8x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does LI's PE Ratio compare to its peers?

The above table shows the PE ratio for LI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.2x
F Ford Motor
11.7x21.3%US$45.2b
GM General Motors
5.2x-9.1%US$58.0b
RACE Ferrari
58.3x9.1%US$87.9b
THO THOR Industries
21.8x17.9%US$5.6b
LI Li Auto
19.9x23.2%US$29.1b

Price-To-Earnings vs Peers: LI is good value based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (24.2x).


Price to Earnings Ratio vs Industry

How does LI's PE Ratio compare vs other companies in the Global Auto Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LI is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the Global Auto industry average (13.8x).


Price to Earnings Ratio vs Fair Ratio

What is LI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio23.8x

Price-To-Earnings vs Fair Ratio: LI is good value based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$28.42
US$29.29
+3.1%
17.2%US$39.71US$18.91n/a28
Oct ’25US$28.60
US$28.57
-0.1%
15.7%US$35.81US$19.22n/a28
Sep ’25US$19.46
US$28.18
+44.8%
15.9%US$35.44US$19.02n/a28
Aug ’25US$19.37
US$32.80
+69.3%
23.2%US$53.11US$21.12n/a28
Jul ’25US$19.08
US$33.04
+73.2%
23.4%US$52.76US$20.97n/a27
Jun ’25US$20.25
US$34.74
+71.6%
23.6%US$53.89US$21.96n/a26
May ’25US$26.35
US$48.71
+84.9%
18.0%US$64.81US$25.04n/a26
Apr ’25US$30.62
US$53.49
+74.7%
18.4%US$82.14US$38.88n/a25
Mar ’25US$43.54
US$57.08
+31.1%
15.5%US$82.41US$42.66n/a25
Feb ’25US$29.15
US$52.29
+79.4%
16.4%US$74.76US$35.63n/a25
Jan ’25US$37.43
US$55.29
+47.7%
15.5%US$75.84US$36.15n/a24
Dec ’24US$36.30
US$54.79
+50.9%
15.3%US$75.20US$35.84n/a24
Nov ’24US$34.99
US$54.51
+55.8%
16.1%US$72.02US$34.97n/a24
Oct ’24US$35.65
US$54.88
+54.0%
15.4%US$72.19US$35.06US$28.6024
Sep ’24US$42.33
US$55.16
+30.3%
15.2%US$72.60US$35.26US$19.4625
Aug ’24US$44.37
US$42.42
-4.4%
18.1%US$60.77US$30.01US$19.3725
Jul ’24US$35.10
US$38.89
+10.8%
17.9%US$60.52US$29.84US$19.0823
Jun ’24US$29.15
US$38.35
+31.6%
17.2%US$58.59US$30.34US$20.2522
May ’24US$23.62
US$34.54
+46.2%
21.9%US$58.32US$24.69US$26.3523
Apr ’24US$24.95
US$34.74
+39.2%
21.9%US$58.66US$24.84US$30.6223
Mar ’24US$24.51
US$34.85
+42.2%
23.3%US$58.63US$22.62US$43.5424
Feb ’24US$26.34
US$35.22
+33.7%
23.3%US$59.74US$23.00US$29.1525
Jan ’24US$20.40
US$34.50
+69.1%
23.3%US$57.97US$24.13US$37.4325
Dec ’23US$21.30
US$36.83
+72.9%
25.5%US$59.15US$21.14US$36.3025
Nov ’23US$14.56
US$38.50
+164.4%
22.0%US$57.73US$20.00US$34.9923
Oct ’23US$23.01
US$42.44
+84.4%
17.4%US$58.79US$27.94US$35.6523

Analyst Forecast: Target price is less than 20% higher than the current share price.


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