BYD shares: a whopping 26%! – Financial trends

On Tuesday, Chinese carmaker BYD recorded a slight gain of 0.45%. The stock price was slightly higher and is currently in a phase of uncertainty. The development of the wholesale market, which seems to be working well at least, can be profitable for the company. Recent reports from China show that sales of Chinese car brands rose 26 percent in the first quarter – positive news that BYD should benefit from.

The possibility of BYD shares

BYD stock chart

The main question that investors and market watchers are asking is how much growth the stock still has. Car sales figures, including those predicted by BYD, do not seem to be fully reflected in current prices. BYD itself has set itself the goal of achieving a 20% increase in sales this year, an expectation that does not seem to have been priced into the market so far.

Despite positive sales forecasts, analysts believe BYD is currently trading below value. This can be seen, among other things, in a low price-earnings ratio (P/E ratio). With a P/E ratio of 16.2 for the year, the value is below the industry average, which can be seen as an indicator that the company is undervalued. So there is hope that the next general meeting on April 19 will give more positive impetus for Share in BYD may involve, which should be of particular interest to economically oriented analysts.