WeRide (NasdaqGM:WRD) Valuation in Focus After Strong Q3 Growth and Major Driverless Milestones

WeRide (NasdaqGM:WRD) turned heads after announcing a leap in its third quarter results. Revenue growth far outpaced expectations and losses decreased sharply. The company also made waves with new driverless Robotaxi operations in Abu Dhabi and Switzerland.

See our latest analysis for WeRide.

Despite WeRide’s record gains in revenue and major breakthroughs in autonomous driving approvals, the stock’s momentum has been mixed. The share price soared 11% this week after strong Q3 results, but it’s still down over 44% year-to-date and the 1-year total shareholder return lags at -54%. These news-driven rebounds hint at renewed optimism, yet persistent volatility suggests investors remain cautious about the road to profitability and the challenges of scaling operations.

If WeRide’s latest milestones got you thinking bigger, now is a great moment to broaden your search and discover See the full list for free.

With shares still far below last year's highs and business momentum accelerating, is WeRide's potential now underestimated, or has the market already factored in its ambitious global roadmap? Is this a buying opportunity, or has future growth been priced in?

Price-to-Sales of 37.5x: Is it justified?

WeRide trades at a price-to-sales ratio of 37.5 times, dramatically higher than the value seen across its peer group. With the last close at $7.92, the market is pricing in a huge premium that stands out compared to both competitors and industry averages.

The price-to-sales (P/S) ratio compares a company’s market value to its revenue. This metric is commonly used for unprofitable or fast-growing businesses where earnings multiples are not meaningful. For WeRide, which remains unprofitable, the P/S multiple reflects how much investors are willing to pay for each dollar of revenue generated.

Looking at the numbers, WeRide’s P/S ratio of 37.5x is not just above peers; it is among the priciest in the industry, far exceeding the US Auto Components peer group average of just 0.7x and the broader industry at 0.8x. Even when compared to its estimated fair price-to-sales ratio of 68.1x, the current multiple is high, though not at the absolute ceiling for its growth profile. If the market were to reweight closer to this fair ratio, it would imply even loftier expectations ahead.

Explore the SWS fair ratio for WeRide

Result: Price-to-Sales of 37.5x (OVERVALUED)

However, WeRide's steep valuation and persistent losses still pose risks if growth slows or if profitability remains elusive in the quarters ahead.

Find out about the key risks to this WeRide narrative.

Build Your Own WeRide Narrative

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A great starting point for your WeRide research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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