Li Auto Inc.

DB:L87A Stock Report

Market Cap: €23.3b

Li Auto Valuation

Is L87A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 L87A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L87A (€23.5) is trading below our estimate of fair value (€26.71)

Significantly Below Fair Value: L87A 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 L87A?

Key metric: As L87A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for L87A. This is calculated by dividing L87A's market cap by their current earnings.
What is L87A's PE Ratio?
PE Ratio17.2x
EarningsCN¥10.17b
Market CapCN¥174.68b

Price to Earnings Ratio vs Peers

How does L87A's PE Ratio compare to its peers?

The above table shows the PE ratio for L87A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.9x
VOW3 Volkswagen
3.6x9.4%€44.3b
BMW Bayerische Motoren Werke
6x3.3%€48.7b
P911 Dr. Ing. h.c. F. Porsche
13.3x9.9%€53.0b
MBG Mercedes-Benz Group
4.6x2.3%€50.3b
L87A Li Auto
17.2x21.5%€23.9b

Price-To-Earnings vs Peers: L87A is expensive based on its Price-To-Earnings Ratio (17.2x) compared to the peer average (6.9x).

Price to Earnings Ratio vs Industry

How does L87A's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
L87A 17.2xIndustry Avg. 17.0xNo. of Companies15PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: L87A is expensive based on its Price-To-Earnings Ratio (17.2x) compared to the Global Auto industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is L87A'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.

L87A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.2x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: L87A is expensive based on its Price-To-Earnings Ratio (17.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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 L87A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.50
€29.17
+24.1%
12.7%€37.80€20.92n/a27
Dec ’25€22.30
€28.68
+28.6%
12.9%€36.98€20.47n/a28
Nov ’25€23.30
€27.94
+19.9%
15.1%€36.69€20.30n/a28
Oct ’25€25.30
€25.64
+1.3%
15.7%€32.16€17.26n/a28
Sep ’25€17.55
€25.48
+45.2%
15.9%€32.07€17.21n/a28
Aug ’25€18.95
€30.29
+59.8%
23.2%€49.05€19.50n/a28
Jul ’25€17.90
€30.84
+72.3%
23.4%€49.25€19.57n/a27
Jun ’25€18.50
€32.17
+73.9%
23.6%€49.90€20.33n/a26
May ’25€24.50
€45.43
+85.4%
18.0%€60.45€23.36n/a26
Apr ’25€27.70
€49.57
+78.9%
18.4%€76.12€36.03n/a25
Mar ’25€40.80
€52.67
+29.1%
15.5%€76.05€39.37n/a25
Feb ’25€27.00
€48.11
+78.2%
16.4%€68.78€32.78n/a25
Jan ’25€34.10
€50.06
+46.8%
15.5%€68.66€32.72€24.3024
Dec ’24€33.30
€50.38
+51.3%
15.3%€69.15€32.96€22.3024
Nov ’24€32.60
€51.58
+58.2%
16.1%€68.15€33.10€23.3024
Oct ’24€33.20
€51.92
+56.4%
15.4%€68.28€33.16€25.3024
Sep ’24€38.60
€51.21
+32.7%
15.2%€67.40€32.73€17.5525
Aug ’24€40.00
€38.63
-3.4%
18.1%€55.33€27.32€18.9525
Jul ’24€31.60
€35.48
+12.3%
17.9%€55.21€27.22€17.9023
Jun ’24€26.50
€35.64
+34.5%
17.2%€54.46€28.20€18.5022
May ’24€21.10
€31.48
+49.2%
21.9%€53.16€22.51€24.5023
Apr ’24€22.90
€32.29
+41.0%
21.9%€54.52€23.08€27.7023
Mar ’24€23.00
€32.68
+42.1%
23.3%€54.99€21.21€40.8024
Feb ’24€24.00
€32.40
+35.0%
23.3%€54.95€21.16€27.0025
Jan ’24€17.85
€32.42
+81.6%
23.3%€54.49€22.68€34.1025

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 03:35
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Li Auto Inc. is covered by 61 analysts. 38 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jiong ShaoBarclays
Jia LouBOCI Research Ltd.
Ming-Hsun LeeBofA Global Research