Valuation of New Energy Vehicle Companies: A Study on BYD Utilizing Discounted Cash Flow Model

Peilin Ye

2024

Abstract

The New Energy Vehicle (NEV) industry has rapidly developed due to the continuously improving technology and growing awareness of the environment. This study concentrates on the Build Your Dreams (BYD) company, which occupies one of the leaders' positions in the NEV market and employs the Discounted Cash Flow (DCF) analysis. The analysis includes the assessment of BYD's efficiency with the help of various models, which help to predict future cash flows and the conditions of different scenarios applying the sensitivity analysis tool, in addition to the estimation of BYD's intrinsic value and its strategic growth. Thus, the current price of BYD reflects the 'fair' share price values, as the company offers attractive growth opportunities for investors, thanks to the stable revenues and the focus on developing new battery technologies. However, the overall values greatly depend on the assumed growth rates and market conditions. The relevance of this work is in presenting a sound, financially oriented framework to reflect on BYD's valuation and determine its position in the context of prevailing and innovative market conditions.

Paper Citation

in Harvard Style

Ye P. (2024). Valuation of New Energy Vehicle Companies: A Study on BYD Utilizing Discounted Cash Flow Model. In Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI; ISBN 978-989-758-726-9, SciTePress, pages 429-436. DOI: 10.5220/0013264800004568

in Bibtex Style

@conference{ecai24,
author={Peilin Ye},
title={Valuation of New Energy Vehicle Companies: A Study on BYD Utilizing Discounted Cash Flow Model},
booktitle={Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI},
year={2024},
pages={429-436},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013264800004568},
isbn={978-989-758-726-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI
TI - Valuation of New Energy Vehicle Companies: A Study on BYD Utilizing Discounted Cash Flow Model
SN - 978-989-758-726-9
AU - Ye P.
PY - 2024
SP - 429
EP - 436
DO - 10.5220/0013264800004568
PB - SciTePress