Outline
Summary
Business Overview Industry Overview
Ratio Analysis
Valuation
Investment Risks Conclusion
Investment Summary
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
Recommendation:
Valuation Price: $45.78
NIO 1 Year Stock Price Trend
BUY
Reasoning:
• Market for electronic vehicles has seen
a dramatic shift in popularity and
necessity in the last 8 months
• NIO’s plan of going global in mid-2021
provides for large amounts of growth
opportunities.
Target Price: $89.80
Business Overview
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
$-
$764,199.28
$1,207,751.87
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
2017 2018 2019
Revenue in USD.(Thousands)
• Current Headquarters:
• Shanghai, China
• Founded in 2014 by William Li
• NIO specifically operates in the electric automobile manufacturing
market.
• Unlike their competitor Tesla, NIO operates on the concept of Battery
Swapping (Patent Approved)
• Tesla Charge Time: 40 minutes vs NIO Battery Swap: 5 minutes
• Extremely involved in the all-electric car racing series known as, FIA
Formula E Championship.
NIO EP9 Sports Car
NIO ES6 SUV
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
Industry Overview
Industry Overview
Main Competitors:
5 Year Industry Outlook
• 11.1% Annual Growth
• Maintaining growth by moving towards a global
audience in mid-2021
• Substitute for gasoline pollution is increasing with the
rise of ESG in the world
Main Industry Drivers
• Favorable Government Policies and Subsidies
• Heavy investments from automakers in Electric
Vehicles
• Growing concerns over environmental pollution
0 100 200 300 400 500 600 700
Ford
Honda
NIO
Toyota
Tesla
Market Cap
Market Cap Comparison
Ratio Analysis
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
Valuation: DCF
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
Conclusion:
Investment
Summary
Business
Overview
Industry
Overview
Financial
Analysis
Valuation Conclusion
Reasons for Optimism:
• Electric car industry is rising significantly in
the past 6 months
• The only other competitor that is making
an affordable electronic vehicle for the
middle class is Tesla
• Q4 2020 Earnings report is being released
on March 2
nd
• Global expansion is expected in mid to late
2021
• Possess the only patent for Battery
Swapping Cars
• Better than industry average Liquidity
Ratios
Reasons for Concern:
• Q4 2020 Earnings report is expected to show a
delay in deliveries
• Their stock price is specifically designed to
increase with global expansion
• COVID-19 Pandemic further delaying deliveries
• Rising costs in SG&A and R&D
Investment Recommendation:
Buy $50,000 of NIO Stock with
potential of more
