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 ($29.39) is trading below our estimate of fair value ($30.47)

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/EBITDA13x
PEG Ratio0.8x

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 Average23.1x
GM General Motors
5x-3.8%US$49.7b
F Ford Motor
11.6x10.3%US$50.3b
RACE Ferrari
55.5x8.6%US$73.9b
THO THOR Industries
20.2x22.9%US$5.5b
LI Li Auto
18x21.8%US$29.2b

Price-To-Earnings vs Peers: LI is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (23.1x).


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/a10.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LI is expensive based on its Price-To-Earnings Ratio (18x) compared to the Global Auto industry average (15.6x).


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 Ratio18x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: LI is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).


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$29.39
US$51.47
+75.1%
18.6%US$81.95US$38.79n/a25
Apr ’25US$30.62
US$53.50
+74.7%
18.4%US$82.14US$38.88n/a25
Mar ’25US$43.54
US$57.08
+31.1%
15.5%US$82.40US$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$35.06n/a24
Sep ’24US$42.33
US$55.16
+30.3%
15.2%US$72.60US$35.26n/a25
Aug ’24US$44.37
US$42.42
-4.4%
18.1%US$60.77US$30.01n/a25
Jul ’24US$35.10
US$38.89
+10.8%
17.9%US$60.52US$29.84n/a23
Jun ’24US$29.15
US$38.35
+31.6%
17.2%US$58.59US$30.34n/a22
May ’24US$23.62
US$34.54
+46.2%
21.9%US$58.32US$24.69n/a23
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
Sep ’23US$27.90
US$43.69
+56.6%
17.7%US$60.80US$27.49US$42.3323
Aug ’23US$34.10
US$45.21
+32.6%
20.2%US$61.30US$27.55US$44.3722
Jul ’23US$37.70
US$43.37
+15.0%
20.9%US$61.92US$27.83US$35.1020
Jun ’23US$25.46
US$38.07
+49.5%
18.9%US$50.36US$26.99US$29.1520
May ’23US$22.43
US$41.11
+83.3%
13.9%US$51.62US$32.52US$23.6219
Apr ’23US$27.24
US$42.46
+55.9%
12.8%US$53.61US$33.78US$24.9519

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.