BYD COMPANY LTD (BYDDY)
UndervaluedFundamental
57
Price
$71.60
Market Cap
$672.39B
Part 1 · What the company is worth
Overview
BYD is a vertically integrated automotive and electronics manufacturer. The automotive segment manufactures battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and conventional vehicles, along with automotive batteries (lithium-ion LFP batteries, the proprietary Blade Battery), power semiconductors, and charging services. The electronics segment assembles mobile device components (smartphones, laptops, tablets), automotive electronics, and energy storage systems. BYD also owns semiconductor operations and lithium mines, controlling the entire supply chain from raw materials through finished products.
How it makes money
Automotive segment: vehicle sales, battery and power system sales (for internal vehicles and external OEM customers), charging station services, and vehicle leasing. Electronics segment: component manufacturing and assembly services for smartphone OEMs, laptop/PC makers, and automotive electronics customers. Battery and semiconductors sold both internally and to external customers. Revenue also generated through energy storage systems for stationary applications.
Revenue by segment
Manufactures and sells battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and internal combustion engine vehicles. Also sells automotive batteries including the proprietary Blade Battery (LFP chemistry), charging systems, vehicle leasing services, power semiconductors for EVs, and energy storage batteries. In 2025, BYD sold 4.6 million vehicles globally with 460.24 million vehicles sold domestically.
Manufactures and assembles mobile device components including smartphone housings, electronic components, and provides assembly services for smartphones, laptops, and tablets. Also produces automotive electronics and components for new intelligent devices. Serves as a contract manufacturer (OEM) for global technology companies in the mobile device and computing industries.
Competitive moat
Patents and licences · WideBYD maintains a wide moat through vertical integration across the automotive supply chain. The company designs and manufactures its own batteries (proprietary Blade Battery using LFP chemistry), power semiconductors, powertrains, and even operates lithium mines. This vertical integration reduces costs, improves quality control, and provides supply security that competitors without captive production cannot match. BYD's scale (4.6M vehicles sold in 2025) enables economies of manufacturing and R&D leverage. The proprietary Blade Battery technology and LFP chemistry expertise create technological advantages. However, the moat faces erosion from intense price competition and competitors developing similar LFP solutions.
What drives demand
Moderately cyclicalBYD's demand follows moderate cyclicality driven by several factors. Global EV adoption grows at 35%+ annually but depends on government incentives, subsidies, and regulatory mandates that can fluctuate. The Chinese market drives majority of volume and is sensitive to domestic government EV policies and macroeconomic cycles. PHEV and energy storage markets show strong growth but face shorter adoption cycles than BEVs. Energy storage demand is driven by grid modernization and renewable energy integration, offering more defensive demand characteristics. International expansion faces tariff cycles and geopolitical policy shifts.
Key risks
- Intense Market Competition and Price Warfare — The Chinese EV market hosts over 169 automakers competing aggressively on price. In 2025, BYD cut prices up to 34% on certain models, and gross margin compressed from 22% in 2024 to approximately 20% in early 2025. Competitors like Geely Galaxy E5 undercut BYD's Yuan PLUS by 4,000 RMB, pressuring market share in the mass-market segment where BYD previously held 50% share.
- Supply Chain Deterioration and Supplier Pressures — BYD demanded suppliers reduce 2025 prices by 10% in November 2024, prompting supplier protests and threatening supply chain relationships. Continued supplier cost-cutting pressures could compromise product quality, reliability, and supplier willingness to invest in innovation. High inventory levels (154.4 billion RMB in Q1 2025) with 70-80 day turnover versus the 30-45 day industry norm suggest demand weakness and potential supply chain strain.
- International Trade Barriers and Geopolitical Risks — The European Union imposed a 17% additional tariff on Chinese battery electric vehicle imports in October 2024, directly impacting BYD's overseas expansion strategy. International expansion faces uncertainty from varying regulatory requirements, trade policy shifts, and political risks in different markets. Overseas exposure accounted for 38.65% of 2025 revenue but faces continued tariff and regulatory headwinds.
- Rapid Technology Evolution and R&D Intensity — The EV industry undergoes rapid technological change with development of solid-state batteries, advanced autonomous driving systems, and power semiconductors. BYD invested CNY 63.4 billion in R&D in 2025 (7.9% of revenue), and this investment level must be sustained to remain competitive. Failure to maintain technological leadership could lead to market share loss to competitors with breakthrough technologies.
Customer concentration
BYD operates a diversified customer base across three business streams. In the automotive segment, BYD sells directly to millions of individual consumers globally (B2C model), creating low customer concentration risk. In the battery business, BYD primarily serves its own automotive manufacturing needs internally, with external OEM customers representing a secondary revenue stream in a highly competitive market (CATL holds 39.9% global share versus BYD's 14.7%). In the electronics components segment, BYD serves major OEM accounts in smartphones and personal computers, creating some customer concentration risk typical of electronics contract manufacturers. Overall company level shows no single customer representing material concentration risk, though individual business segments have varying concentration profiles.
The case for
Buyers argue that BYD's fully integrated supply chain—controlling lithium mines, battery production, power semiconductors, and manufacturing—delivers structural cost advantages and quality control that competitors without captive production cannot match. With 4.6 million vehicles sold in 2025 and market-leading positions in EVs, PHEVs, and LFP batteries, BYD benefits from massive scale and R&D leverage. The proprietary Blade Battery technology and LFP chemistry expertise provide technological differentiation in a market increasingly favoring LFP over traditional NCA/NCM batteries. International expansion with exports exceeding 1 million vehicles annually accesses higher-margin overseas markets. The company is well-positioned to capture growth from the global EV market (35%+ CAGR), energy storage boom (25.4% CAGR in China), and transition to solid-state batteries where its R&D capabilities (CNY 63.4B invested in 2025) provide competitive advantage.
The case against
Sellers fear that intense domestic competition is eroding BYD's margins unsustainably—gross margin fell from 22% in 2024 to 20% in 2025 despite revenue growth, and the company cut prices up to 34% on certain models. Over 169 automakers compete in China with aggressive pricing, and this price war shows no signs of abating. High inventory levels (154.4 billion RMB in Q1 2025) with 70-80 day turnover versus 30-45 day industry norms suggest underlying demand weakness masked by production volume. Demands for supplier cost cuts (10% reduction mandated in 2025) risk supply chain reliability and quality as suppliers reduce investment. International expansion faces significant headwinds from the EU's 17% tariff on Chinese EV imports, forcing costly localization strategies. Massive R&D spending (CNY 63.4B, 7.9% of revenue) may not translate to sustainable competitive advantage if competitors achieve similar technological breakthroughs in solid-state batteries or autonomous driving. The battery business faces competition from CATL (39.9% global share versus BYD's 14.7%), and LFP technology is becoming commoditized as competitors adopt similar approaches.
Generated with artificial intelligence on September 21, 2026, shared with all users
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 18, 2026, shared with all users
Tesla and BYD contend for the title of largest electric-vehicle maker in the world and sell competing models to the same buyers in China, Europe, Latin America and Southeast Asia.
Geely is the closest rival to BYD in China's new-energy vehicle market, second with a 12.2% share in 2025, selling plug-in hybrids and battery-electric cars in the same mass-market price brackets through its Geely, Galaxy and Zeekr brands.
Changan was the third-largest seller of new-energy vehicles in China in 2025 with a 6.2% share, targeting the same value-conscious domestic buyers with its Deepal, Avatr and Qiyuan lines.
SAIC competes with BYD both in China's entry-level electric segment through SAIC-GM-Wuling and abroad, where its MG brand sells in the same European and Latin American markets BYD is expanding into.
Chery held 4.1% of China's new-energy vehicle market in 2025 and is BYD's main rival for exports, selling to the same emerging-market customers in Latin America, the Middle East and Southeast Asia.
Balance Sheet & Liquidity
Revenue
$316.34B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$11.96B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$-96.30B
Total Equity
$114.10B
Total Liabilities
$125.90B
Current Ratio
0.87
Interest Coverage
-
Debt/EBITDA
1.07
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$111.54
Current Price
$71.60
Margin of Safety
+35.8%
Fair Value Range
$86.20 - $136.87
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
22.04
ROE
11.6%
P/B Ratio
2.50
P/FCF
-
Gross Margin
16.6%
ROIC
18.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
18.5%
WACC
6.7%
ROIC − WACC
+11.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (10)
- Price CAGR 18.91%
- ROIC 18.5%
- P/B ratio 2.50
- Debt/equity ratio
- Current ratio
- Debt/EBITDA
- ROE 10.1%
- Revenue growth 5Y 38.7%
- PEG ratio 0.46
- Earnings quality (operating cash flow / net income) 1.98
Failed (8)
- Gross margin 16.6%
- Operating margin 4.7%
- Positive free cash flow
- Price below Graham Number
- DCF valuation (Unknown)
- Earnings surprise, average -21.6%
- Net margin trend 4.1% vs 5.2%
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- P/FCF –
- Dividend payout –
- CapEx intensity
- Interest coverage
- Return on tangible assets
- Low reliance on intangibles
- Share dilution (missing share count)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Chuan-Fu Wang | Executive Chairman, President & CEO | 59 |
| Ms. Ya-Lin Zhou | Senior VP & CFO | 48 |
| Mr. Qian Li | Secretary to the Board, Company Secretary & GM of Investment Department | 52 |
| Ms. Ke Li | Executive Vice President | 55 |
| Mr. Long He | Executive Vice President | 53 |
| Mr. Hong-Bin Luo | Senior Vice President & GM of Division 14 | 59 |
| Mr. Dong-Sheng Yang | Senior Vice President | 46 |
| Mr. Zhi-Qi He | Executive VP & COO of Passenger Car Division | 53 |
| Mr. Huan-Ming Liu | VP & GM of the Audit Inspection Division | 62 |
| Mr. Chuanfang Wang | VP & GM Logistics Division | 64 |
Audit Risk
6
Board Risk
6
Compensation Risk
5
Shareholder Rights Risk
5
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much BYDDY moves, measured on its daily prices.
More volatile than 54% of the tracked stocks (90-day volatility).
- Volatility 30d
- 34.0%
- Volatility 90d
- 37.8%
- Beta vs S&P 500 (1y)
- 0.28Correlation 0.10
- Max drawdown (12m)
- -40.5%
- ATR (14d, % of price)
- 3.64%
Earnings reactions
How BYDDY moved around its past quarterly results.
Next earnings release
Oct 29, 2026 · In 5 days · Before the open
Revenue estimate: $271.7B
What usually happens
- Not enough releases with data yet: we have 0, we need at least 4.
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on BYDDY and what the price did next.
- 10/12/2026PositiveBYD, verso massiccia campagna di assunzioni in Europa: oltre le 40.000 unità entro il 2030
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/12/2026PositiveBYD's European Workforce to Reach 40,000 in 2030
- +1 day
- -1.6%
- +3 days
- -2.5%
- 8/28/2026PositiveBYD, l'export spinge la ripresa: utili +30%
- +1 day
- +1.0%
- +3 days
- -2.1%
- 8/27/2026PositiveBYD’s $20 Billion Stock Comeback May Extend on Export Success
- +1 day
- +1.0%
- +3 days
- -2.1%
- 6/18/2026PositiveThe Long Game Behind China’s European EV Push
- +1 day
- -2.1%
- +3 days
- -6.4%
- 6/17/2026PositiveBYD Takes On Luxury EV Rivals in China With More Affordable SUV
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 6/15/2026PositiveBYD wants to become the world’s largest automaker in five years. Stella Li is the executive selling that vision to the world
- +1 day
- -2.9%
- +3 days
- -5.3%
- 6/5/2026PositiveBYD Leads China's Global EV Push As Overseas Demand Accelerates
- +1 day
- +0.3%
- +3 days
- -1.1%
- 5/11/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +1.7%
- +3 days
- -2.2%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for BYDDY.
- 12d agoPOSITIVEBYD, verso massiccia campagna di assunzioni in Europa: oltre le 40.000 unità entro il 2030
BYD is planning a significant hiring drive across Europe, aiming to expand its regional workforce to approximately 40,000 employees by 2030. This aggressive expansion signals strong confidence in the European market for BYD's electric vehicles and related technologies. The move is expected to bolster BYD's manufacturing, sales, and service capabilities on the continent, potentially increasing market share and revenue. Investors may view this as a positive indicator of future growth and commitment to international expansion.
- 12d agoPOSITIVEBYD's European Workforce to Reach 40,000 in 2030
BYD Co. Executive Vice President Stella Li announced plans for the company's European workforce to expand significantly, projecting close to 40,000 employees by 2030. This expansion signals strong confidence in BYD's European market strategy and its commitment to local operations, including potential manufacturing and R&D investments. The growth trajectory suggests increasing market share and production capacity for BYD's electric vehicles in Europe, a key region for EV adoption. Investors may view this as a positive indicator of future revenue growth and market penetration.
- 8/28/2026POSITIVEBYD, l'export spinge la ripresa: utili +30%
Chinese electric vehicle giant BYD Company Limited has reported a 30% surge in profits, marking a significant recovery after five consecutive quarters of decline. The growth is primarily attributed to strong export sales, which have helped offset the ongoing price war impacting the domestic Chinese market. This performance indicates BYD's successful international expansion strategy and its ability to navigate competitive domestic pressures. Investors may see this as a sign of resilience and potential for continued global market share gains.
- 8/27/2026NEUTRALBYD Needs EV Success Overseas to Sustain $20 Billion Stock Rally
BYD Co. has experienced a significant stock rally, adding approximately $20 billion to its market capitalization in roughly two months. However, the company now faces a critical juncture as it must prove its ability to achieve substantial success in international markets. This overseas expansion is crucial for sustaining the recent stock performance, especially in the face of ongoing geopolitical challenges and trade tensions that could impact global sales and profitability. Investors are closely watching BYD's ability to navigate these complexities and secure a stronger global footprint beyond its domestic market.
- 8/27/2026POSITIVEBYD’s $20 Billion Stock Comeback May Extend on Export Success
BYD Co. has experienced a significant stock rally, adding approximately $20 billion to its market capitalization in just two months. This surge is largely attributed to growing export success, which is poised to be a key driver for continued strength. Despite facing geopolitical headwinds, BYD's ability to expand its international presence suggests robust demand for its products and a strong competitive position. Investors are watching closely to see if this overseas momentum can sustain the company's impressive comeback and further boost its valuation.
- 6/18/2026POSITIVEThe Long Game Behind China’s European EV Push
Chinese EV manufacturer BYD is making significant strategic investments in Europe, countering perceptions of mere capacity dumping. The company is establishing a 3,000-station flash charging network to bolster EV adoption across the continent. This move, alongside investments from Chery, SAIC, and others in European manufacturing facilities, signals a long-term commitment to the region. BYD's integrated battery production capabilities further strengthen its competitive position. For investors, this indicates a proactive strategy to capture market share and build a robust European presence, potentially leading to sustained growth and increased brand value.
- 6/17/2026POSITIVEBYD Takes On Luxury EV Rivals in China With More Affordable SUV
BYD Co. has unveiled its largest electric vehicle to date, the Yangwang U8, a premium SUV designed to compete with luxury brands in the Chinese market. This move signals BYD's ambition to capture a larger share of the high-end EV segment, traditionally dominated by foreign automakers. The strategy involves offering a more affordable alternative to established luxury SUVs, potentially attracting a new customer base. Investors will monitor sales figures and market reception closely as BYD expands its product portfolio beyond its core mass-market offerings, aiming to enhance brand perception and profitability.
- 6/15/2026POSITIVEBYD wants to become the world’s largest automaker in five years. Stella Li is the executive selling that vision to the world
BYD Company Limited, under the leadership of Stella Li, has rapidly ascended to become the world's largest electric vehicle (EV) manufacturer. The company is aggressively pursuing a five-year plan to become the global leader in overall automotive production. Li's strategic expansion into key international markets, including Europe, Asia, and Latin America, underscores BYD's ambitious growth trajectory. This vision, coupled with its current dominance in the EV sector, positions BYD for significant future market share gains and potential outperformance for investors.
- 6/5/2026POSITIVEBYD Leads China's Global EV Push As Overseas Demand Accelerates
BYD Company is spearheading China's global electric vehicle (EV) expansion, with overseas demand accelerating significantly. Alongside Chery, BYD is aggressively increasing international sales, capitalizing on a global surge in EV interest and a more subdued domestic market. This strategic push into foreign markets indicates strong growth potential and diversification for the company. Investors may see this as a positive sign for future revenue streams and market share expansion, potentially leading to increased profitability and stock valuation.