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Research on the Investment Value of BYD Based on SWOT, Financial, and Valuation Methods
- 1 Institute of Finance, Henan University of Economics and Law, 450016, Henan, China
* Author to whom correspondence should be addressed.
Abstract
Against the backdrop of environmental degradation, green energy transformation is a strategic measure to address climate change and promote green development. The new energy vehicle industry is experiencing an unprecedented period of rapid growth. As a leading player in this sector, BYD's development is virtually representative of the Chinese new energy vehicle industry. SWOT analysis, financial analysis, and valuation analysis are crucial criteria for assessing the development status of a company. Through the analysis of profitability, operational capability, and P/E ratio data, the development status, operational capability, market competitiveness, and growth potential of a company can be directly reflected. The results show vertical integration of supply chain and cost advantage is the main strength of BYD, however it has the weakness of excessive dependence on Chinese government subsidies. From the perspective of financial performance, it has great profitability and its operating capacity situation is good. Moreover, the valuation shows it is worth for investment. This provides decision-makers with information and suggestions on enterprise management, investment, and financing, helping investors and managers make rational decisions.
Keywords
BYD Auto, New energy vehicles, Financial analysis, Valuation analysis
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Cite this article
Ning,Z. (2024). Research on the Investment Value of BYD Based on SWOT, Financial, and Valuation Methods. Advances in Economics, Management and Political Sciences,112,176-183.
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Volume title: Proceedings of the 8th International Conference on Economic Management and Green Development
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