WeRide (WRD): Assessing Valuation After Dubai Robotaxi Launch on Uber in Key Tourist Corridors

WeRide (WRD) just flipped a major switch in Dubai, with its Robotaxi service now live on the Uber app across the busy Umm Suqeim and Jumeirah tourist corridors, giving investors a clearer view of real world demand.

See our latest analysis for WeRide.

The Dubai rollout lands as WeRide trades around $8.92, with a roughly 10% 1 month share price return but a weak year to date share price performance and a 1 year total shareholder return still firmly negative. This suggests sentiment is cautious even as growth milestones stack up.

If this kind of autonomy milestone has your attention, it is also worth scanning high growth tech and AI stocks to spot other tech and AI names that could be next in line for momentum.

With revenue surging nearly 80% year over year, but the stock still down more than 40% on a 1 year view and trading at a steep discount to analyst targets, is WRD a contrarian buy, or is the market already discounting its future robotaxi expansion?

Price-to-Sales of 42.1x: Is it justified?

At a last close of $8.92, WeRide trades on a lofty price-to-sales ratio of 42.1 times, signalling an aggressive valuation relative to its current revenue base.

The price-to-sales multiple compares the company’s market value to its annual sales. This is a common yardstick for fast growing, loss making mobility and tech businesses where earnings are still negative.

For WRD, that 42.1 times sales tag looks stretched when set against both its own fundamentals and peers. The stock is described as expensive versus an estimated fair price-to-sales ratio of 16.4 times. The gap is even starker against the US Auto Components industry, where the average price-to-sales multiple sits at just 0.8 to 0.9 times, underscoring how much future growth is already embedded in today’s price.

Explore the SWS fair ratio for WeRide

Result: Price-to-Sales of 42.1x (OVERVALUED)

However, risks remain, including steep ongoing losses and the possibility that regulators or riders may be slower to embrace fully driverless services at scale.

Find out about the key risks to this WeRide narrative.

Build Your Own WeRide Narrative

If you would rather dig into the numbers yourself and challenge this view, you can build a personalised WeRide storyline in minutes, Do it your way.

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.

Looking for more investment ideas?

Before you move on, consider scanning a few powerful stock shortlists built from objective data, not hype or social media noise.

• Explore potential multibaggers by checking out these 3604 penny stocks with strong financials that already show stronger financial underpinnings than many bargain bin names.
• Review these 26 AI penny stocks that are shaping real world use cases in automation, analytics, and intelligent software.
• Focus on these 904 undervalued stocks based on cash flows that our models flag as trading below their estimated intrinsic cash flow value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com