BYD Company Limited - Revision history

>Vraj Agarwal: /* Income Statement [25] */

2023-07-28T23:52:34Z

Income Statement [25]

← Older revision		Revision as of 00:52, 29 July 2023
Line 1,346:		Line 1,346:
	\| -		\| -
	\|-		\|-
	\|Gross Income		!Gross Income
	\|66779		!66779
	\|27443		!27443
	\|29162		!29162
	\|19611		!19611
	\|20880		!20880
	\|-		\|-
	\|Gross Income Growth		\|Gross Income Growth
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	\|1617		\|1617
	\|-		\|-
	\|EBIT		!EBIT
	\|22435		!22435
	\|5073		!5073
	\|11123		!11123
	\|5099		!5099
	\| -		! -
	\|-		\|-
	\|Unusual Expense		\|Unusual Expense
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	\|919		\|919
	\|-		\|-
	\|Net Income		!Net Income
	\|19330		!19330
	\|3670		!3670
	\|4758		!4758
	\|1831		!1831
	\|3293		!3293
	\|-		\|-
	\|Net Income Growth		\|Net Income Growth
Line 1,598:		Line 1,598:
	\|2728		\|2728
	\|-		\|-
	\|EBITDA		!EBITDA
	\|46123		!46123
	\|22076		!22076
	\|25190		!25190
	\|16257		!16257
	\|17281		!17281
	\|-		\|-
	\|EBITDA Growth		\|EBITDA Growth
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	\|81		\|81
	\|-		\|-
	\|Total Assets		!Total Assets
	\|557196		!557196
	\|362922		!362922
	\|239130		!239130
	\|219439		!219439
	\|222896		!222896
	\|-		\|-
	\|Assets - Total - Growth		\|Assets - Total - Growth
Line 2,105:		Line 2,105:
	\|1591		\|1591
	\|-		\|-
	\|Total Liabilities		!Total Liabilities
	\|420907		!420907
	\|229922		!229922
	\|161318		!161318
	\|151833		!151833
	\|155934		!155934
	\|-		\|-
	\|Non-Equity Reserves		\|Non-Equity Reserves
Line 2,203:		Line 2,203:
	\|6267		\|6267
	\|-		\|-
	\|Total Equity		!Total Equity
	\|136289		!136289
	\|127518		!127518
	\|75121		!75121
	\|65110		!65110
	\|64770		!64770
	\|-		\|-
	\|Liabilities & Shareholders' Equity		\|Liabilities & Shareholders' Equity

>Vraj Agarwal: /* Relative Valuation */

2023-07-28T23:50:39Z

Relative Valuation

Show changes

>Vraj Agarwal: /* DCF */

2023-07-28T22:42:05Z

DCF

← Older revision		Revision as of 23:42, 28 July 2023
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	\|CAPM (Capital Asset Pricing Model)		\|CAPM (Capital Asset Pricing Model)
	\|}		\|}
			All financial figures for the DCF are reported in HKD (Hong Kong Dollar). As per the currency exchange rate on 28/07/23, 1 HKD was equivalent to 0.13 US Dollars. <ref>https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CNY</ref>

			The implied share price for BYD Company is $44.13 (HK$ 344.24), while the closing share price on 28/07/23 was $34.77 (HK$ 271.20).
	{\| class="wikitable"		{\| class="wikitable"
	\|'''Present vale of FCF'''		\|'''Present vale of FCF'''
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	\|}		\|}


	All financial figures for the DCF are reported in HKD (Hong Kong Dollar). As per the currency exchange rate on 28/07/23, 1 HKD was equivalent to 0.13 US Dollars. <ref>https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CNY</ref>

	~~The implied share price for BYD Company is $44.13 (HK$ 344.24), while the closing share price on 28/07/23 was $34.77 (HK$ 271.20).~~
	Sensitivity analysis is conducted to investigate the impact of WACC fluctuating between 6.5% and 10.0% and terminal growth rate between 0% and 2.5%.		Sensitivity analysis is conducted to investigate the impact of WACC fluctuating between 6.5% and 10.0% and terminal growth rate between 0% and 2.5%.
	{\| class="wikitable"		{\| class="wikitable"

>Vraj Agarwal: /* DCF */

2023-07-28T22:41:15Z

DCF

Show changes

>Dinil.wanni: /* Intense Competition in the Chinese Market: */

2023-07-28T10:08:50Z

Intense Competition in the Chinese Market:

← Older revision		Revision as of 11:08, 28 July 2023
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	=== Intense Competition in the Chinese Market: ===		=== Intense Competition in the Chinese Market: ===
	The Chinese new energy vehicle market is experiencing rapid growth, attracting numerous players seeking to maximize their interests. Beijing Automotive Group, Geely, and other Chinese independent brands have made significant strides in developing ~~NEVs~~, posing a direct threat to BYD's market share. Additionally, well-established foreign automakers like Tesla, BMW, and Volkswagen, backed by substantial financial and technological resources, also compete for a share of this vast market. To stay ahead, BYD must not only focus on product quality but also refine its product after-sales and marketing strategies to retain customer loyalty and attract new buyers.		The Chinese new energy vehicle market is experiencing rapid growth, attracting numerous players seeking to maximize their interests. Beijing Automotive Group, Geely, and other Chinese independent brands have made significant strides in developing EVs, posing a direct threat to BYD's market share. Additionally, well-established foreign automakers like Tesla, BMW, and Volkswagen, backed by substantial financial and technological resources, also compete for a share of this vast market. To stay ahead, BYD must not only focus on product quality but also refine its product after-sales and marketing strategies to retain customer loyalty and attract new buyers.

	=== Subsidy-Driven Market Dynamics: ===		=== Subsidy-Driven Market Dynamics: ===
	Government subsidies play a crucial role in the Chinese ~~NEV~~ market, encouraging consumers to adopt eco-friendly vehicles. Although BYD has benefited from subsidies, it faces stiff competition from other brands, particularly Tesla, which has secured significant financial support from various countries. This is evident from the fact that over the past 20 years, Tesla has successfully obtained various government subsidies, including tax breaks, loans, and other incentives, adding up to nearly $3 billion. Additionally, in 2020, Tesla's eligibility for significant financial support in China is highlighted by the substantial 2.1 billion yuan subsidy it received exclusively for new energy vehicles. These subsidies have helped Tesla and other competitors narrow the advantage that BYD might have gained, making it imperative for BYD to rely on continuous innovation and improvement rather than relying solely on subsidies.		Government subsidies play a crucial role in the Chinese EV market, encouraging consumers to adopt eco-friendly vehicles. Although BYD has benefited from subsidies, it faces stiff competition from other brands, particularly Tesla, which has secured significant financial support from various countries. This is evident from the fact that over the past 20 years, Tesla has successfully obtained various government subsidies, including tax breaks, loans, and other incentives, adding up to nearly $3 billion. Additionally, in 2020, Tesla's eligibility for significant financial support in China is highlighted by the substantial 2.1 billion yuan subsidy it received exclusively for new energy vehicles. These subsidies have helped Tesla and other competitors narrow the advantage that BYD might have gained, making it imperative for BYD to rely on continuous innovation and improvement rather than relying solely on subsidies.

	=== Threats from Competitors: ===		=== Threats from Competitors: ===

>Vraj Agarwal: /* Relative Valuation */

2023-07-28T09:51:35Z

Relative Valuation

>Vraj Agarwal: /* Income Statement */

2023-07-28T09:49:11Z

Income Statement

← Older revision		Revision as of 10:49, 28 July 2023
Line 1,184:		Line 1,184:
	== Appendix ==		== Appendix ==

	=== Income Statement ===		=== Income Statement <ref>https://www.wsj.com/market-data/quotes/BYDDF/financials/annual/income-statement</ref> ===
	{\| class="wikitable"		{\| class="wikitable"
	!Fiscal year is February-January. All values HKD Millions.		!Fiscal year is February-January. All values HKD Millions.
Line 1,530:		Line 1,530:
	\|}		\|}

	=== Balance Sheet ===		=== Balance Sheet <ref>https://www.wsj.com/market-data/quotes/BYDDF/financials/annual/balance-sheet</ref> ===
	{\| class="wikitable"		{\| class="wikitable"
	!Fiscal year is February-January. All values HKD Millions.		!Fiscal year is February-January. All values HKD Millions.
Line 2,127:		Line 2,127:
	\|222896		\|222896
	\|}		\|}
	=== Cash Flow Statement ===		=== Cash Flow Statement <ref>https://www.wsj.com/market-data/quotes/BYDDF/financials/annual/cash-flow</ref> ===
	{\| class="wikitable"		{\| class="wikitable"
	!Fiscal year is February-January. All values HKD Millions.		!Fiscal year is February-January. All values HKD Millions.

>Vraj Agarwal: /* Historical & Forward financials */

2023-07-28T09:45:52Z

Historical & Forward financials

← Older revision		Revision as of 10:45, 28 July 2023
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	== Financials ==		== Financials ==

	=== Historical & Forward financials ===		=== Historical & Forward financials <ref name=":0">https://stockanalysis.com/stocks/byddf/forecast/</ref> ===
	The revenue has grown rapidly since 2018 with the exception of 2019 where negative revenue (CNY -127.74B) and growth rates were observed (-1.78%). Analysts expect the revenue on average to be CNY 645.5B (2023), CNY 814.6B (2024) and CNY 938.0B (2025). This translates to average revenue growth of 52.2%, 26.2% and 15.2% respectively.		The revenue has grown rapidly since 2018 with the exception of 2019 where negative revenue (CNY -127.74B) and growth rates were observed (-1.78%). Analysts expect the revenue on average to be CNY 645.5B (2023), CNY 814.6B (2024) and CNY 938.0B (2025). This translates to average revenue growth of 52.2%, 26.2% and 15.2% respectively.
	[[File:26 -1.png\|none\|thumb\|1187x1187px]]		[[File:26 -1.png\|none\|thumb\|1187x1187px]]
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	[[File:26 -4.png\|none\|thumb\|1212x1212px]]		[[File:26 -4.png\|none\|thumb\|1212x1212px]]
	=== Financial Ratios ===		=== Financial Ratios ===
	The following table summarises how the evolution of the key financial ratios since 2013.		The following table summarises how the evolution of the key financial ratios since 2013. <ref name=":0" />
	{\| class="wikitable"		{\| class="wikitable"
	!Year		!Year
Line 573:		Line 573:


	Between 2021 and 2022, some of the financial ratios have changed drastically. The Debt/EBITDA ratio has decreased by 70% from 1.63 to to 0.49 as the company's earnings has increased significantly in relation to its debt, putting the business in a better position to pay off the incurred debt.		Between 2021 and 2022, some of the financial ratios have changed drastically. The Debt/EBITDA ratio has decreased by 70% from 1.63 to to 0.49 as the company's earnings has increased significantly in relation to its debt, putting the business in a better position to pay off the incurred debt. <ref>[https://www.investopedia.com/terms/d/debt_edbitda.asp#:~:text=Debt%2FEBITDA%E2%80%94earnings%20before%20interest,pay%20off%20its%20incurred%20debt. https://www.investopedia.com/terms/d/debt_edbitda.asp#:~:text=Debt%2FEBITDA%E2%80%94earnings%20before%20interest,pay%20off%20its%20incurred%20debt.]</ref>

	The Debt/FCF ratio has also plummeted from 1.26 to 0.5 by 60%. This is another coverage ratios which reinforces that the cash generated by the company puts it in a healthy position to cover all its debt.		The Debt/FCF ratio has also plummeted from 1.26 to 0.5 by 60%. This is another coverage ratios which reinforces that the cash generated by the company puts it in a healthy position to cover all its debt. <ref>https://www.investopedia.com/terms/c/cash-flowtodebt-ratio.asp</ref>

	The return on equity has increased by 11.77% in 2022. Return on equity is the ratio of net income to shareholder's equity. Higher net income stems from the growth in revenue which ultimately increases the return on equity.		The return on equity has increased by 11.77% in 2022. Return on equity is the ratio of net income to shareholder's equity. Higher net income stems from the growth in revenue which ultimately increases the return on equity. <ref>https://www.investopedia.com/terms/r/returnonequity.asp</ref>

	The ~~96.2%~~ growth in revenue fuels the optimistic forecasts (for revenue and EPS) and the substantial changes observed in the financial ratios. The new product range offered by BYD for customers looking for an affordable transition to electric vehicles, entry into the European market and government policies promoting the transition to sustainable transportation have been the fundamental driving factors in revenue growth observed in since 2021.		The significant growth in revenue over last year fuels the optimistic forecasts (for revenue and EPS) and the substantial changes observed in the financial ratios. The new product range offered by BYD for customers looking for an affordable transition to electric vehicles, entry into the European market and government policies promoting the transition to sustainable transportation have been the fundamental driving factors in revenue growth observed in since 2021.

	== Valuation ==		== Valuation ==
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	!2019		!2019
	!2020		!2020
	!~~2021E~~		!2021
	!~~2022E~~		!2022
	!~~2023E~~		!2023
	!~~2024E~~		!2024
	!~~2025E~~		!2025
	\|-		\|-
	\|'''Revenue'''		\|'''Revenue'''
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	The terminal growth rate is estimated to be 5.0% in order to obtain the terminal value. The enterprise value is obtained by summing the present value of free cash flow forecasts and terminal value. Net debt is deducted from the enterprise value to reach the equity value.		The terminal growth rate is estimated to be 5.0% in order to obtain the terminal value. The enterprise value is obtained by summing the present value of free cash flow forecasts and terminal value. Net debt is deducted from the enterprise value to reach the equity value.
	{\| class="wikitable"		{\| class="wikitable"
			!Assumptions
			!Value
			!Explaination
			\|-
	\|'''Risk free rate (5 year US Bond)'''		\|'''Risk free rate (5 year US Bond)'''
	\|4.20%		\|4.20%
			\|US 5 Year Treasury Note <ref>https://www.marketwatch.com/investing/bond/tmubmusd05y?countrycode=bx</ref>
	\|-		\|-
	\|'''Market risk premium'''		\|'''Market risk premium'''
	\|5.00%		\|5.00%
			\|Analysts' expectation <ref name=":1">https://valueinvesting.io/BYD/valuation/wacc</ref>
	\|-		\|-
	\|'''Levered beta'''		\|'''Levered beta'''
	\|0.64		\|0.64
	\|-		\|Analysts' expectation <ref name=":1" />
	\|
	\|
	\|-		\|-
	\|'''Cost of equity'''		\|'''Cost of equity'''
	\|7.40%		\|7.40%
			\|CAPM (Capital Asset Pricing Model)
	\|-		\|-
	\|'''Cost of debt'''		\|'''Cost of debt'''
	\|5.00%		\|5.00%
			\|Analysts' expectation <ref name=":1" />
	\|-		\|-
	\|'''~~Share~~ price (~~as of 05~~/07/~~2023~~)~~'''~~		\|'''Terminal growth rate'''
	~~\|67~~.94		\|5.00%
	\|-		\|Analysts' expectation <ref name=":1" />
	\|'''Shares outstanding ~~(latest reported)~~'''		\|}
	\|2,861,142,855

			All financial figures are often reported in Chinese Yuan for BYD as a Chinese company. As per the currency exchange rate on 22/07/23, 1 Chine Yuan Renminbi was equivalent to 0.14 US Dollars. <ref>https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CNY</ref>

			The implied share price for BYD Company is $91.34 (¥ 653.90), while the closing share price on 21/07/23 was $68.11 (¥489.56).
			{\| class="wikitable"
			\|'''Shares outstanding'''
			\|2,861,142,855 <ref>[https://companiesmarketcap.com/byd/shares-outstanding/#:~:text=Number%20of%20shares%20outstanding%20as,company%20had%202%2C908%2C495%2C070%20shares%20outstanding. https://companiesmarketcap.com/byd/shares-outstanding/#:~:text=Number%20of%20shares%20outstanding%20as,company%20had%202%2C908%2C495%2C070%20shares%20outstanding.]</ref>
	\|-		\|-
	\|'''Market capitalization'''		\|'''Market capitalization'''
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	\|7.40%		\|7.40%
	\|-		\|-
	~~\|'''Terminal growth rate'''~~
	~~\|5.00%~~
	\|}
	~~All financial figures are often reported in Chinese Yuan for BYD as a Chinese company. As per the currency exchange rate on 22/07/23, 1 Chine Yuan Renminbi was equivalent to 0.14 US Dollars.~~

	~~The implied share price for BYD Company is $57.88 (¥ 413.45), while the closing share price on 21/07/23 was $68.11 (¥489.56).~~
	~~{\| class="wikitable"~~
	\|'''Equity Value'''		\|'''Equity Value'''
	\|1,182,930,437		\|1,182,930,437
	\|-		\|-
	\|'''Implied Share Price'''		\|'''Implied Share Price'''
	\|$ 57.88		\|$ 91.34
	\|-		\|-
	\|'''Current Share Price'''		\|'''Current Share Price'''
	\|$ 68.11		\|$ 68.11 <ref>https://www.barrons.com/market-data/stocks/byddy</ref>
	\|}		\|}
	Sensitivity analysis is conducted to investigate the impact of WACC fluctuating between 6.0% and 9.0% and terminal growth rate between 3.5% and 6.0%.		Sensitivity analysis is conducted to investigate the impact of WACC fluctuating between 6.0% and 9.0% and terminal growth rate between 3.5% and 6.0%.
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	=== Relative Valuation ===		=== Relative Valuation ===

	Trading comparable analysis was used to compare BYD company to its competitors in the market. A range of different multiples are used to evaluate the current share price of BYD company.		Trading comparable analysis was used to compare BYD company to its competitors in the market. A range of different multiples are used to evaluate the current share price of BYD company. <ref>https://www.alphaspread.com/security/hkex/1211/relative-valuation</ref>
	{\| class="wikitable"		{\| class="wikitable"
	!Company		!Company

>Dinil.wanni: /* Risks */

2023-07-28T09:39:21Z

Risks

← Older revision		Revision as of 10:39, 28 July 2023
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	=== Subsidy-Driven Market Dynamics: ===		=== Subsidy-Driven Market Dynamics: ===
	Government subsidies play a crucial role in the Chinese NEV market, encouraging consumers to adopt eco-friendly vehicles. Although BYD has benefited from subsidies, it faces stiff competition from other brands, particularly Tesla, which has secured significant financial support from various countries. These subsidies have helped Tesla and other competitors narrow the advantage that BYD might have gained, making it imperative for BYD to rely on continuous innovation and improvement rather than relying solely on subsidies.		Government subsidies play a crucial role in the Chinese NEV market, encouraging consumers to adopt eco-friendly vehicles. Although BYD has benefited from subsidies, it faces stiff competition from other brands, particularly Tesla, which has secured significant financial support from various countries. This is evident from the fact that over the past 20 years, Tesla has successfully obtained various government subsidies, including tax breaks, loans, and other incentives, adding up to nearly $3 billion. Additionally, in 2020, Tesla's eligibility for significant financial support in China is highlighted by the substantial 2.1 billion yuan subsidy it received exclusively for new energy vehicles. These subsidies have helped Tesla and other competitors narrow the advantage that BYD might have gained, making it imperative for BYD to rely on continuous innovation and improvement rather than relying solely on subsidies.

	=== Threats from Competitors: ===		=== Threats from Competitors: ===
	While BYD has managed to establish a prominent position in the Chinese auto market, the emergence of new players, such as Great Wall Motor, poses a challenge to its dominance. Additionally, global automotive giants like Toyota, Honda, and General Motors have also made substantial investments in research and development of new energy vehicles, potentially overtaking BYD's technological leadership. Furthermore, BYD ~~must be vigilant about competitors leveraging scale effects~~ to ~~reduce unit product costs or undercutting prices~~ to ~~gain market share~~.		While BYD has managed to establish a prominent position in the Chinese auto market, the emergence of new players, such as Great Wall Motor, poses a challenge to its dominance. Additionally, global automotive giants like Toyota, Honda, and General Motors have also made substantial investments in research and development of new energy vehicles, potentially overtaking BYD's technological leadership. Furthermore, BYD's strong emphasis on independent research, development, and innovation, there are certain disparities between their technology and some international counterparts. BYD has not been particularly successful in assimilating cutting-edge technologies from global sources. In comparison, Tesla has established partnerships with numerous companies, enabling it to benefit from collaborations. Notably, approximately 50% of Tesla's batteries are supplied by CATL and LG, while Nidec Corp provides the Tesla motor. These esteemed manufacturers have played a crucial role in elevating Tesla's vehicle quality to exceptional levels.

	=== Patent Disputes: ===		=== Patent Disputes: ===

>Vraj Agarwal: /* DCF */

2023-07-28T09:17:52Z

DCF

← Older revision		Revision as of 10:51, 28 July 2023
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	\|}		\|}

	The valuation multiples are expressed in the bar charts with the industry median and the respective value for BYD.		The valuation multiples are expressed in the bar charts with the industry median and the respective value for BYD.

			'''EV/EBIT'''
	[[File:28 - 1.png\|none\|thumb\|1115x1115px]]		[[File:28 - 1.png\|none\|thumb\|1115x1115px]]
	EV/EBIT – The ratio evaluated 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 suggests an overvaluation.		EV/EBIT – The ratio evaluated 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 suggests an overvaluation.

			'''P/S'''
	[[File:28-2.png\|none\|thumb\|1077x1077px]]		[[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>		<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>


			'''EV/EBITDA'''

	[[File:28-3.png\|none\|thumb\|1081x1081px]]		[[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.		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.

			'''P/E'''
	[[File:28-5.png\|none\|thumb\|1164x1164px]]		[[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.		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.

			'''PEG'''
	[[File:28-4.png\|none\|thumb\|1226x1226px]]		[[File:28-4.png\|none\|thumb\|1226x1226px]]
	PEG is the ratio of P/E to earnings growth rate. 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).		PEG is the ratio of P/E to earnings growth rate. 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).

			'''Growth Adjusted EV/EBITDA'''
	[[File:28-6.png\|none\|thumb\|1235x1235px]]		[[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).		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).

← Older revision		Revision as of 10:17, 28 July 2023
Line 1,136:		Line 1,136:
	The valuation multiples are expressed in the bar charts with the industry median and the respective value for BYD.		The valuation multiples are expressed in the bar charts with the industry median and the respective value for BYD.
	[[File:28 - 1.png\|none\|thumb\|1115x1115px]]		[[File:28 - 1.png\|none\|thumb\|1115x1115px]]
	EV/EBIT – The ratio evaluated 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 8 while the EV/EBITDA ratio of BYD is 29.7. A high EV/EBITDA ratio suggests an overvaluation.		EV/EBIT – The ratio evaluated 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 suggests an overvaluation.
	[[File:28-2.png\|none\|thumb\|1077x1077px]]		[[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 0.65 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>		<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>

	[[File:28-3.png\|none\|thumb\|1081x1081px]]		[[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 29.7. A high EV/EBITDA ratio suggests an overvaluation.		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.
	[[File:28-5.png\|none\|thumb\|1164x1164px]]		[[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 8.75 while the P/S ratio of BYD is 38.2. A high P/E ratio suggests that the investors are willing to pay a higher price per dollar of EPS generated implying an overvaluation.		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.
	[[File:28-4.png\|none\|thumb\|1226x1226px]]		[[File:28-4.png\|none\|thumb\|1226x1226px]]
	PEG is the ratio of P/E to earnings growth rate. 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).		PEG is the ratio of P/E to earnings growth rate. 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).
	[[File:28-6.png\|none\|thumb\|1235x1235px]]		[[File:28-6.png\|none\|thumb\|1235x1235px]]
	The growth adjusted EV/EBITDA is the ratio of EV/EBITDA to the growth i		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).

	== ESG Factors ==		== ESG Factors ==