Why we think NIO Stock Will Outperform through 2025

This NIO analysis sets out to answer the age-old question "Is the NIO stock a good buy right now?". This analysis uses 2 valuation methods to determine a NIO Stock Forecast, which can help us to answer the "age-old question". You are probably aware that NIO Inc. (NYSE: NIO) is a leader in the Auto Manufacturers space. In this analysis, we are going to look at some of the key financial ratios for NIO Inc. to determine a price prediction for NIO. Remember these price predictions take into account several assumptions (which I will highlight) to determine a future price. I'll share my NIO stock price prediction, then show you the approach and assumptions used to calculate the NIO stock forecast. Before we go any further, let me start by saying this, stock forecasting is hard. I don't know what the future will hold, and neither do Wall Street Analysts. If they could accurately predict the future, they would be able to beat the S&P 500 and I would be extremely wealthy. What I can say is that we can use available data to determine a reasonable NIO stock forecast and helps us make better investment decisions, so hopefully, you find this analysis useful. NIO Stock Forecast for 2025 is $43.81 Per Share The NIO Inc. stock price prediction of $43.81 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $43.81 for NIO. NIO Inc. Financial Growth Metrics NIO Comparable Companies Analysis The Financial growth Metrics provide an analytics valuation approach to determining a reasonable NIO stock forecast. The comparable companies analysis determines NIO stock forecast by comparing NIO's financial ratios to the average financial ratios of a group of similar stocks. NIO Stock Forecast Using PE Ratio and EPS For this part of the analysis, I am looking at the history of key financial metrics for NIO Inc. to forecast the stock into 2022 and 2025. Most investors know that historical performance does not guarantee future performance, but it is useful to see how NIO has been trending. With NIO Forward (2025)  Earnings Per Share estimate is currently $0.69. Furthermore, NIO's Forward Price to Earnings Ratio (for 2025) has also been estimated to be about 101.69.  then we determine the NIO stock forecast by multiple the P/E by the EPS to give us a stock price prediction of $70.17 per share There are other ways to predict the price for NIO but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast NIO's stock price. NIO Stock Forecast for 2025 Using Comparable Analysis Who are NIO Inc.'s Competitors? In order to undergo a comparable analysis, we need to outline NIO's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to NIO, and a market cap similar to NIO (if possible). By keeping this in mind, I found the following list of companies to be some of NIO stocks closest competitors: CCZ, STLA, CPNG, HMC, RACE, F, and CVNA Using a Comparable Analysis to Determine a NIO Price Forecast Price to Book (P/B): NIO's current P/B ratio is 7.09, compared to the average P/B ratio of NIO's peers being 6.39. This implies that NIO is overvalued, and their share price should change by a factor of -9.88% to be at fair value (based on NIO's P/B compared to the P/B of their peers). Quick Ratio (CA-Inventory/CL): NIO's Quick Ratio is 1.71, compared to the average Quick Ratio of NIO's peers being 1.35. This implies that NIO is undervalued, and its share price should change by a factor of 26.32% to be at fair value (based on NIO's Quick Ratio compared to the Quick Ratio of their peers). Price to Sales (P/S): NIO's P/S ratio is 6.32, compared to the average P/S ratio of NIO's peers being 2.41. This implies that NIO is overvalued, and their share price should change by a factor of -61.9% to be at fair value (based on NIO's P/S compared to the P/S of their peers). Overall, NIO stock is overvalued and needs to experience a change in the stock price of (an average of) -22.73% to be considered “at fair value”. Applying this percentage change to NIO's current price of $22.6 implies a forecasted price of $17.46 Are the NIO Analyst Ratings in Agreeance With Our Conclusion? Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our NIO stock forecast. There are a total of 31 analyst ratings for NIO, which are distributed as follows: 27 Buys 4 Holds 0 Sells Overall, the vast majority of analysts seem to be bullish on the NIO stock through 2025. This is good news as we have arrived at a similar conclusion through our valuation methods. Furthermore, the fact that no analysts have rated the NIO stock as a sell is very good to see as well. NIO Stock Forecast 2025 Summary Should you buy NIO? Well, based on the overall NIO stock forecast of $43.81 per share, and the current price of NIO, I would agree with the analysts and say NIO is a buy. Let me know what you think, happy to dive into other aspects of NIO to help you make an informed investment decision.

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Why we think NIO Stock Will Outperform through 2025

Jul 11, 2022

bullish

general Analysis

[4 min Read]

blog post cover photo

Photo by: Li Zhang

This NIO analysis sets out to answer the age-old question "Is the NIO stock a good buy right now?". This analysis uses 2 valuation methods to determine a NIO Stock Forecast, which can help us to answer the "age-old question".

You are probably aware that NIO Inc. (NYSE: NIO) is a leader in the Auto Manufacturers space. In this analysis, we are going to look at some of the key financial ratios for NIO Inc. to determine a price prediction for NIO. Remember these price predictions take into account several assumptions (which I will highlight) to determine a future price. I'll share my NIO stock price prediction, then show you the approach and assumptions used to calculate the NIO stock forecast.

Before we go any further, let me start by saying this, stock forecasting is hard. I don't know what the future will hold, and neither do Wall Street Analysts. If they could accurately predict the future, they would be able to beat the S&P 500 and I would be extremely wealthy. What I can say is that we can use available data to determine a reasonable NIO stock forecast and helps us make better investment decisions, so hopefully, you find this analysis useful.

NIO Stock Forecast for 2025 is $43.81 Per Share

The NIO Inc. stock price prediction of $43.81 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $43.81 for NIO.

  1. NIO Inc. Financial Growth Metrics
  2. NIO Comparable Companies Analysis

The Financial growth Metrics provide an analytics valuation approach to determining a reasonable NIO stock forecast. The comparable companies analysis determines NIO stock forecast by comparing NIO's financial ratios to the average financial ratios of a group of similar stocks.

NIO Stock Forecast Using PE Ratio and EPS

For this part of the analysis, I am looking at the history of key financial metrics for NIO Inc. to forecast the stock into 2022 and 2025. Most investors know that historical performance does not guarantee future performance, but it is useful to see how NIO has been trending.

With NIO Forward (2025) Earnings Per Share estimate is currently $0.69. Furthermore, NIO's Forward Price to Earnings Ratio (for 2025) has also been estimated to be about 101.69. then we determine the NIO stock forecast by multiple the P/E by the EPS to give us a stock price prediction of $70.17 per share

There are other ways to predict the price for NIO but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast NIO's stock price.

NIO Stock Forecast for 2025 Using Comparable Analysis

Who are NIO Inc.'s Competitors?

In order to undergo a comparable analysis, we need to outline NIO's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to NIO, and a market cap similar to NIO (if possible).

By keeping this in mind, I found the following list of companies to be some of NIO stocks closest competitors:

CCZ, STLA, CPNG, HMC, RACE, F, and CVNA

Using a Comparable Analysis to Determine a NIO Price Forecast

Price to Book (P/B):

NIO's current P/B ratio is 7.09, compared to the average P/B ratio of NIO's peers being 6.39. This implies that NIO is overvalued, and their share price should change by a factor of -9.88% to be at fair value (based on NIO's P/B compared to the P/B of their peers).

Quick Ratio (CA-Inventory/CL):

NIO's Quick Ratio is 1.71, compared to the average Quick Ratio of NIO's peers being 1.35. This implies that NIO is undervalued, and its share price should change by a factor of 26.32% to be at fair value (based on NIO's Quick Ratio compared to the Quick Ratio of their peers).

Price to Sales (P/S):

NIO's P/S ratio is 6.32, compared to the average P/S ratio of NIO's peers being 2.41. This implies that NIO is overvalued, and their share price should change by a factor of -61.9% to be at fair value (based on NIO's P/S compared to the P/S of their peers).

Overall, NIO stock is overvalued and needs to experience a change in the stock price of (an average of) -22.73% to be considered “at fair value”. Applying this percentage change to NIO's current price of $22.6 implies a forecasted price of $17.46

Are the NIO Analyst Ratings in Agreeance With Our Conclusion?

Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our NIO stock forecast. There are a total of 31 analyst ratings for NIO, which are distributed as follows:

27 Buys

4 Holds

0 Sells

Overall, the vast majority of analysts seem to be bullish on the NIO stock through 2025. This is good news as we have arrived at a similar conclusion through our valuation methods. Furthermore, the fact that no analysts have rated the NIO stock as a sell is very good to see as well.

NIO Stock Forecast 2025 Summary

Should you buy NIO? Well, based on the overall NIO stock forecast of $43.81 per share, and the current price of NIO, I would agree with the analysts and say NIO is a buy. Let me know what you think, happy to dive into other aspects of NIO to help you make an informed investment decision.

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NIO

NIO Inc.

19.78

-0.13
-0.65%

Return

-12.86%
Change % Since Posting
-2.92
Change Since Posting
22.70
Price When Posted

Metrics

24.97
Target Price
8/ 10
Confidence
1-3 Years
Timeframe
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