Analysis of the Valuation Influencing Factors of BYD

Among the torrent of revolution towards new energy, the trend of BYD's valuation is closely watched by the market among the leading firms in the Chinese automobile industry. Based on BYD as the study object, this study examines the driving forces behind the fluctuations in its level of valuation. Based on the existing literature and integrating with mainstream methods (such as price-earning ratio P/E, enterprise value multiple EV/EBITDA, and discounted cash flow DCF model), an empirical investigation is conducted on BYD. Based on this basis, this study examines the intrinsic driving forces behind its fluctuations in the level of valuation in an orderly way from the micro level to macro level. The study believes notwithstanding the negative external environment, BYD's solid foundation in performance shows that its current level in valuation could to some extent be underestimated. The study provides a theoretical foundation and practical reference to the evaluation of the valuation of firms in the new energy vehicle industry.