Research on the investment value of BYD based on SWOT, financial and valuation methods

Abstract

Nowadays, the climate problem is severe, widely arousing global concern. Environmental protection has become a guide to action in people’s daily life. Meanwhile, the international situation is relatively grim, various countries has begun to pay attention to the sustainable development issues and build new energy systems to guarantee energy security and stability. Therefore, the value and development of new energy vehicles have received widespread attention. This article takes BYD company as a case study, applying SWOT, financial and valuation analysis methods to do the specific analysis for the investment value of the new energy vehicle industry. Research shows that BYD company reveals the human resources and technical strength occupy an advantage. In addition, recent years, the rapid growth in sales has also brought good profit margin, indicating good future development potential. However, the imperfection of related supporting facilities, peer competition and relatively low solvency may bring threat to the future development of the enterprise. This article can help investors get a more comprehensive understanding BYD’s investment value and development prospects, providing reference for their investment. It is also beneficial to the entire new energy industry to have a better understanding of the internal and external business and sales environment.