Li Auto Inc.

NasdaqGS:LI Stock Report

Market Cap: US$22.5b

Li Auto Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($22.28) is trading below our estimate of fair value ($31.68)

Significantly Below Fair Value: LI is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LI. This is calculated by dividing LI's market cap by their current earnings.
What is LI's PE Ratio?
PE Ratio15.8x
EarningsCN¥10.17b
Market CapCN¥163.34b

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 Average23.4x
F Ford Motor
12.6x19.7%US$42.9b
GM General Motors
5.9x-10.2%US$61.2b
RACE Ferrari
52.6x9.4%US$77.0b
THO THOR Industries
22.5x17.9%US$5.9b
LI Li Auto
15.8x24.7%US$22.5b

Price-To-Earnings vs Peers: LI is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LI 15.8xIndustry Avg. 15.7xNo. of Companies13PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LI is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the Global Auto industry average (15.7x).

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 Ratio15.8x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: LI is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

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$22.28
US$30.30
+36.0%
12.9%US$39.08US$21.63n/a28
Nov ’25US$25.06
US$30.28
+20.8%
15.1%US$39.76US$22.00n/a28
Oct ’25US$28.60
US$28.55
-0.2%
15.7%US$35.81US$19.22n/a28
Sep ’25US$19.46
US$28.16
+44.7%
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$34.97US$25.0624
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

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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