New Energy Vehicle Financial Analysis and ROI- based Valuation: A Case Study of BYD

Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v6i2.3946

Yuchen Yao

Durham Business School, Durham University, DH1 3LB, UK

Abstract

In recent years, the global commitment to sustainable development has significantly elevated the strategic importance of new energy development worldwide. Driven by government incentives and subsidies, consumer demand for new energy vehicles (NEVs) has experienced exponential growth. As a leading new energy vehicle company, BYD occupies a large market share, so it is of great significance for studying BYD. This paper reformulates the company’s income statement and assesses accounting quality, conduces financial analysis, prospective analysis, and applied residual operating income valuation model based on data from 2019-2023 and then provides a investment recommendations and conclusion remarks for investors. Overall, our study is not only helps understand the overall development trend of the NEVs industry, but also provides valuable references for government decision- making, corporate strategy, and industry judgement.

Keywords

new energy vehicle, financial analysis, ROI model, BYD

References

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