DiDi (OTCPK:DIDI.Y): Valuation Check After Robotaxi Trials, Self‑Driving Fundraise, Buyback and IPO Settlement Progress

DiDi Global (OTCPK:DIDI.Y) is back in focus after launching 24/7 fully unmanned robotaxi trials in Guangzhou, raising fresh capital for its self-driving arm, completing a major buyback, and nearing closure on a sizeable U.S. IPO lawsuit settlement.

See our latest analysis for DiDi Global.

Despite the legal overhang easing and the robotaxi push signalling long term growth ambitions, DiDi Global’s 30 day share price return of 3.18 percent contrasts with a still weak 90 day share price return of minus 23.26 percent. This suggests momentum is only tentatively recovering, even as the three year total shareholder return of 41.53 percent shows longer term investors remain ahead overall.

If DiDi’s robotaxi and self driving story has caught your attention, this could be a good moment to hunt for other innovative mobility and EV names among auto manufacturers.

With DiDi still lossmaking but growing fast, trading below analyst targets yet boasting a strong three year return, investors face a key question: is this a discounted entry into China’s mobility champion, or has the market already priced in future growth?

Price-to-Sales of 0.8x: Is it justified?

DiDi Global trades on a 0.8x price-to-sales multiple at 5.18 dollars per share, implying the market is pricing its revenue well below peers.

The price-to-sales ratio compares the company’s market value with its annual revenue, a useful yardstick for fast growing but still unprofitable mobility platforms like DiDi.

Based on Simply Wall St’s checks, DiDi screens as good value on this metric, trading not only below peers on a 2.8x average but also below the broader US transportation sector on 1.2x.

What makes this discount more striking is that the estimated fair price-to-sales ratio for DiDi sits at 1.2x, a level the share could gravitate toward if sentiment and fundamentals continue improving.

Explore the SWS fair ratio for DiDi Global

Result: Price-to-Sales of 0.8x (UNDERVALUED)

However, DiDi’s ongoing losses and reliance on favorable regulatory conditions in China still risk derailing sentiment and limiting any valuation re-rating.

Find out about the key risks to this DiDi Global narrative.

Another View: What Our DCF Model Suggests

While the low price to sales hints at value, our DCF model paints an even starker picture, putting fair value at 19.46 dollars versus the current 5.18 dollars. That implies DiDi might be deeply undervalued, but are the growth and risk assumptions too optimistic?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out DiDi Global for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 913 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own DiDi Global Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized thesis in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding DiDi Global.

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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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