Editing BYD Company Limited (section)

=== Relative Valuation ===

Trading comparable analysis was used to compare BYD to its competitors in the market. A range of different multiples are used to evaluate if the current share price of BYD is fairly priced or under/overvalued . <ref>https://www.alphaspread.com/security/hkex/1211/relative-valuation</ref>
{| class="wikitable"
!Company
!P/S
!P/E
!EV/EBITDA
!EV/EBIT
!PEG
!Growth adjusted EV/EBITDA
|-
|'''BYD Co'''
|'''1.6'''
|'''38.0'''
|'''29.5'''
|'''29.5'''
|'''21.8'''
|'''8.7'''
|-
|Tesla
|8.9
|68.2
|48.8
|64.7
|128.7
|55.5
|-
|Toyota
|0.8
|12.8
|9.2
|16.1
|58.2
| -460.0
|-
|Porsche 
|1.8
|13.3
|6.8
|9.4
|443.3
|170.0
|-
|Mercedes Benz
|0.5
|5.2
|4.5
|6.1
| -130.0
|64.3
|-
|Audi AG
|1.4
|11.4
|10.4
|10.4
| -
| -
|-
|Volkswagen
|0.2
|5.7
|2.6
|6.3
|95.0
| -37.1
|-
|Ferrari
|13.4
|72.2
|38.7
|56.0
|141.6
|82.3
|-
|BMW
|0.5
|6.3
|4.0
|6.3
| -14.7
|30.8
|-
|Daimler
|0.4
|3.7
|4.0
|5.4
|2.5
| -
|-
|Stellantis
|0.3
|3.7
|1.1
|1.5
|0.1
|26%
|-
|
|
|
|
|
|
|
|-
|'''Median'''
|'''0.7'''
|'''8.9'''
|'''5.7'''
|'''7.9'''
|'''58.2'''
|'''43.1'''
|-
|Mean
|2.8
|20.3
|13.0
|18.2
|80.5
| -11.8
|-
|Lower Quartile
|0.4
|5.3
|4.0
|6.2
|0.1
| -9.1
|-
|Upper Quartile
|1.7
|13.2
|10.1
|14.7
|128.7
|68.8
|-
|Min 
|0.2
|3.7
|1.1
|1.5
| -130.0
| -460.0
|-
|Max
|13.4
|72.2
|38.7
|56.0
|443.3
|170.0
|}

The valuation multiples are expressed in the bar charts with the industry median and the value of the respective multiple for BYD, highlighted using a dotted line.   

'''EV/EBIT''' 
[[File:28 - 1.png|none|thumb|1115x1115px]]
EV/EBIT – The ratio evaluates the enterprise value of the company (considering all debts and liabilities) with respect to the operating earnings of the company. The average EV/EBITDA ratio in the industry is 7.9 while the EV/EBITDA ratio of BYD is 29.5. A high EV/EBITDA ratio implies an overvaluation. <ref>https://www.investopedia.com/terms/e/ebit-ev-multiple.asp</ref> 
 
'''P/S''' 
[[File:28-2.png|none|thumb|1077x1077px]]
 
<big>P/S – Price to Sales ratio evaluates how much an investor values each dollar of sale generated by the company. The average P/S ratio in the industry is 0.7 while the P/S ratio of BYD is 1.6. A high P/S ratio suggests that the investors are willing to pay a higher price per dollar of sale generated implying an overvaluation.</big> <ref>https://www.investopedia.com/terms/p/price-to-salesratio.asp</ref>



'''EV/EBITDA''' 
 
[[File:28-3.png|none|thumb|1081x1081px]]
 
EV/EBITDA – The ratio evaluates the enterprise value of the company (considering all debts and liabilities) with respect to the operating performance of the company. The average EV/EBITDA ratio in the industry is 5.7 while the EV/EBITDA ratio of BYD is 29.5. A high EV/EBITDA ratio suggests an overvaluation.  <ref>https://www.investopedia.com/terms/e/ev-ebitda.asp</ref>  

'''P/E''' 
[[File:28-5.png|none|thumb|1164x1164px]]
P/E – Price to Earnings ratio shows how much an investor is willing to pay per dollar of earnings generated. It portrays an investor’s expectation of the future earnings of the company. The average P/E ratio in the industry is 8.9 while the P/S ratio of BYD is 38.0. A high P/E ratio suggests that the investors are willing to pay a higher price per dollar of EPS generated implying an overvaluation. <ref>https://www.investopedia.com/terms/p/price-earningsratio.asp</ref> 
 
'''PEG''' 
[[File:28-4.png|none|thumb|1226x1226px]]
PEG is the ratio of P/E to the growth rate of earnings. A PEG ratio greater than 1 indicates that the stock is overvalued while a PEG ratio smaller than 1 indicates the stock is undervalued. As a result of high earnings forecasts for BYD, the PEG ratio for BYD (21.8) is noticeably lower than the industry median (58.2). <ref>https://www.investopedia.com/terms/p/pegratio.asp</ref> 
 
'''Growth Adjusted EV/EBITDA''' 
[[File:28-6.png|none|thumb|1235x1235px]]
The growth adjusted EV/EBITDA is the ratio of EV/EBITDA to the growth in EBITDA. The growth adjusted EV/EBITDA for BYD (8.7) is noticeably smaller than the industry median (43.1).