Analysis On Investment Value Of NIO Based On Harvard Analysis Framework

In recent years,China has become the world’s biggest new energy automobile market,with the global climate change,energy conservation and environmental protection concept deeply rooted in the hearts of the people,policy support,new energy vehicles gradually popularization in our country,and gradually replace the position of fuel cars in the consumers’ mind,at the same time,new energy vehicles has increased year by year,it has great potential of development.As the representative of High-end new energy electric vehicles in China,NIO has been losing money since its listing in 2018.In 2020,it experienced a continuous surge in stock price and became the second new energy vehicle enterprise with market value.Why is the stock price of NIO soaring all the way? Does NIO still have investment value in the future?In view of the above questions,this paper selects The Harvard analysis framework and studies the investment value of NIO in combination with the specific situation of NIO.First of all,this paper starts from the strategic level,conducts a macro strategic analysis of NIO with PEST analysis,and makes a detailed analysis of NIO itself with SWOT analysis.Secondly,several accounting items that have a greater impact on NIO are selected for analysis to reflect the investment value of its operation.Then,based on the analysis of accounting items,the corresponding financial indicators are selected to judge the investment value of NIO in terms of finance.Thirdly,the prospect of NIO is analyzed and predicted,the intrinsic value of NIO is analyzed through free cash flow discount,and the development prospect and future risks of NIO are analyzed accordingly.Finally,the above analysis is summarized and the following three suggestions are put forward for NIO: optimize the capital structure to reduce financial risks;Reasonable expansion of production capacity,reduce production costs;Continue to invest in r＆d to enhance core competition.Through the analysis and research of this paper,IT can be concluded that NIO,as a start-up and high-tech local high-end new energy vehicle brand in China,will continue to develop rapidly in the next few years,and has good investment value in the long run.