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BYD COMPANY LTD (BYDDY)

Undervalued
Consumer CyclicalAuto ManufacturersChina

Fundamental

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

Automobiles and Related Products80.68%

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.

Mobile Handset Components, Assembly Service and Other Products19.31%

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 · Wide

BYD 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 cyclical

BYD'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

Compare

Generated with artificial intelligence on September 18, 2026, shared with all users

P/E: 344.6Score: 49Market cap: $1.40T

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 Automobile Holdings Limited (吉利汽车控股有限公司)0175.HK

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.

Chongqing Changan Automobile Company Limited (重庆长安汽车股份有限公司)Not tracked

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 Motor Corporation Limited (上海汽车集团股份有限公司)Not tracked

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 Automobile Co., Ltd. (奇瑞汽车股份有限公司)Not tracked

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

CyclicalUndervalued

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

Analyst price target:$123.48
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$57.79
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):$39.52
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:Not applicable to this type of company
Last Earnings Surprise:+38.45%

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

2/9

Serious financial concerns

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.98

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Chuan-Fu WangExecutive Chairman, President & CEO59
Ms. Ya-Lin ZhouSenior VP & CFO48
Mr. Qian LiSecretary to the Board, Company Secretary & GM of Investment Department52
Ms. Ke LiExecutive Vice President55
Mr. Long HeExecutive Vice President53
Mr. Hong-Bin LuoSenior Vice President & GM of Division 1459
Mr. Dong-Sheng YangSenior Vice President46
Mr. Zhi-Qi HeExecutive VP & COO of Passenger Car Division53
Mr. Huan-Ming LiuVP & GM of the Audit Inspection Division62
Mr. Chuanfang WangVP & GM Logistics Division64

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.

VolatilityMedium

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.

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 agoPOSITIVE
    BYD, 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 agoPOSITIVE
    BYD'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.

  • 8/28/2026POSITIVE
    BYD, 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.

  • 8/27/2026NEUTRAL
    BYD 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.

  • 8/27/2026POSITIVE
    BYD’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.

  • 6/18/2026POSITIVE
    The 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.

  • 6/17/2026POSITIVE
    BYD 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.

  • 6/15/2026POSITIVE
    BYD 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.

  • 6/5/2026POSITIVE
    BYD 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.