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Should You Think About Buying Geely Automobile Holdings Limited (HKG:175) Now?

Simply Wall St · 4d ago

Today we're going to take a look at the well-established Geely Automobile Holdings Limited (HKG:175). The company's stock saw significant share price movement during recent months on the SEHK, rising to highs of HK$19.80 and falling to the lows of HK$16.56. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Geely Automobile Holdings' current trading price of HK$17.60 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Geely Automobile Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is Geely Automobile Holdings Worth?

Great news for investors – Geely Automobile Holdings is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 10.48x is currently well-below the industry average of 13.76x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Geely Automobile Holdings’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move closer to its industry peers, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Check out our latest analysis for Geely Automobile Holdings

What kind of growth will Geely Automobile Holdings generate?

earnings-and-revenue-growth
SEHK:175 Earnings and Revenue Growth January 5th 2026

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Geely Automobile Holdings' earnings over the next few years are expected to increase by 44%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 175 is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on 175 for a while, now might be the time to enter the stock. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 175. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

It can be quite valuable to consider what analysts expect for Geely Automobile Holdings from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Geely Automobile Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.