Nio stock is broken, but the company is doing great. Why do you think it's overvalued still? Seems a 3 P/S of 2023 sales seems kinda cheap for a company growing 100% a year? Would love to hear, thanks for the technical analysis :)
Out of all these 5 Evs companies, I do like NIO. However, when I did my DCF evaluation with reasonable assumptions. I used 30% revenue growth for thr next 10 years, profit margin of 8%, PE 18, P to FCF 18, I get around $28 a share. Now. These are extremely high assumptions. Tsla profit margin is around 7% (just to give some comparison). I am a buyer for NIO around $10 a share, so I would SELL PUT at $10 strike price to collect premium til eventually I get fill. Not to mention, it is a Chinese stock. Investing in China is very high risk. Delisting can happen over night at anytime. Just like BABA. I think BABA fair stock price in today's price is above $250. So as an investor, we need to factors these possibilities.
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I almost feel like a celebrity for suggesting that first EV technical video!! LOL 😂 thanks again for your reviews, they are very helpful!!
Nio stock is broken, but the company is doing great. Why do you think it's overvalued still? Seems a 3 P/S of 2023 sales seems kinda cheap for a company growing 100% a year? Would love to hear, thanks for the technical analysis :)
Out of all these 5 Evs companies, I do like NIO. However, when I did my DCF evaluation with reasonable assumptions. I used 30% revenue growth for thr next 10 years, profit margin of 8%, PE 18, P to FCF 18, I get around $28 a share. Now. These are extremely high assumptions. Tsla profit margin is around 7% (just to give some comparison). I am a buyer for NIO around $10 a share, so I would SELL PUT at $10 strike price to collect premium til eventually I get fill. Not to mention, it is a Chinese stock. Investing in China is very high risk. Delisting can happen over night at anytime. Just like BABA. I think BABA fair stock price in today's price is above $250. So as an investor, we need to factors these possibilities.