Latest Ratios: P/E Ratio 75.6x · EV/EBITDA 11.0x · ROE 1.5%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.8B | $18.1B | $25.5B | $39.6B | $19.8B | $29.7B | $26.1B | — | — |
| Enterprise Value | $6.0B | $-20980014480 | $-24015774365 | $-38192901160 | $-6413081800 | $9.7B | $19.3B | — | — |
| P/E Ratio → | 75.57 | 16.28 | 3.18 | 3.38 | — | — | — | — | — |
| P/S Ratio | 0.73 | 0.17 | 0.18 | 0.32 | 0.43 | 1.12 | 2.92 | — | — |
| P/B Ratio | 1.15 | 0.25 | 0.36 | 0.65 | 0.44 | 0.72 | 0.88 | — | — |
| P/FCF | — | — | 3.11 | 0.90 | 8.79 | 6.08 | 10.59 | — | — |
| P/OCF | — | — | 1.60 | 0.78 | 2.68 | 3.57 | 8.31 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.19 | -0.17 | -0.31 | -0.14 | 0.37 | 2.15 | — | — |
| EV / EBITDA | 10.98 | -5.72 | -2.55 | -4.28 | — | — | — | — | — |
| EV / EBIT | — | -14.72 | -2.53 | -3.62 | — | — | — | — | — |
| EV / FCF | — | — | -2.93 | -0.86 | -2.85 | 1.99 | 7.82 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.7% | 18.7% | 20.5% | 22.2% | 19.1% | 20.8% | 15.5% | -34.2% | — |
| Operating Margin | -0.9% | -0.9% | 4.4% | 5.8% | -8.1% | -3.8% | -6.8% | -647.2% | — |
| Net Profit Margin | 1.0% | 1.0% | 5.6% | 9.5% | -4.4% | -1.2% | -1.8% | -857.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.5% | 1.5% | 12.2% | 22.1% | -4.7% | -0.9% | -0.9% | -222.6% | — |
| ROA | 0.7% | 0.7% | 5.3% | 10.2% | -2.8% | -0.6% | -0.7% | -31.8% | -27.5% |
| ROIC | -2.6% | -2.6% | 209.3% | 606.7% | -13.9% | -3.4% | -3.2% | -70.9% | — |
| ROCE | -1.1% | -1.1% | 7.8% | 11.0% | -6.8% | -2.5% | -3.3% | -41.4% | -29.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.24 | 0.24 | 0.23 | 0.22 | 0.27 | 0.19 | 0.07 | 0.37 | — |
| Debt / EBITDA | 4.86 | 4.86 | 1.74 | 1.52 | — | — | — | — | — |
| Net Debt / Equity | — | -0.53 | -0.69 | -1.28 | -0.58 | -0.49 | -0.23 | 0.09 | — |
| Net Debt / EBITDA | -10.67 | -10.67 | -5.26 | -8.72 | — | — | — | — | — |
| Debt / FCF | — | — | -6.04 | -1.76 | -11.64 | -4.09 | -2.77 | — | — |
| Interest Coverage | 8.72 | 8.72 | 50.62 | 122.18 | -19.31 | -1.42 | -1.78 | -25.95 | -16.80 |
Net cash position: cash ($56.9B) exceeds total debt ($17.8B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.81 | 1.81 | 1.82 | 1.57 | 2.45 | 4.33 | 7.28 | 1.08 | 1.31 |
| Quick Ratio | 1.68 | 1.68 | 1.71 | 1.48 | 2.20 | 4.19 | 7.04 | 0.97 | 1.31 |
| Cash Ratio | 1.59 | 1.59 | 1.63 | 1.42 | 2.06 | 3.92 | 6.65 | 0.76 | 0.53 |
| Asset Turnover | — | 0.71 | 0.89 | 0.86 | 0.53 | 0.43 | 0.25 | 0.03 | — |
| Inventory Turnover | 10.14 | 10.14 | 14.03 | 14.02 | 5.48 | 13.05 | 7.21 | 0.73 | 578.70 |
| Days Sales Outstanding | — | 0.40 | 0.34 | 0.42 | 0.38 | 1.65 | 4.72 | 10.69 | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 6.1% | 31.4% | 29.5% | — | — | — | — | — |
| FCF Yield | — | — | 32.1% | 111.6% | 11.4% | 16.5% | 9.4% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $971M | $927M | $905M | $905M | $905M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying LI stock.
Li Auto Inc.'s current P/E ratio is 75.6x. The historical average is 7.6x. This places it at the 100th percentile of its historical range.
Li Auto Inc.'s current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Li Auto Inc.'s return on equity (ROE) is 1.5%. The historical average is -27.6%.
Based on historical data, Li Auto Inc. is trading at a P/E of 75.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Li Auto Inc. has 18.7% gross margin and -0.9% operating margin.
Li Auto Inc.'s Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative operating leverage from revenue decline
Margin Erosion Undermines Core Earning Power
Gross margins have collapsed from a peak of 23.5% in 2023Q4 to just 11.0% in 2026Q2, a 1,250 basis point decline that suggests severe pricing pressure and/or an unfavorable product mix shift, as reported in recent financial statements.
The sharp compression in gross margin indicates that Li Auto's EREV cost advantage is being eroded by market dynamics, likely intense price competition in the premium SUV segment. This erosion is now flowing directly to the bottom line, with operating margins turning negative at -8.6% in 2026Q2, confirming that the company's high fixed-cost structure is amplifying the impact of lower revenue. The trend suggests the company's true earning power is significantly lower than its historical peak, and profitability may remain strained until either volume recovers or cost restructuring occurs.
Capital Efficiency Deteriorates Sharply
Return on Invested Capital (ROIC) has swung from a robust 158.4% in 2024Q3 to -3.7% in 2026Q2, indicating a severe breakdown in the company's ability to generate returns on its deployed capital, based on reported financial metrics.
The dramatic reversal in ROIC from highly profitable levels to negative territory signals that the capital invested in the business is no longer generating adequate returns. This deterioration is driven by collapsing profitability (net margin of -6.6%) rather than a significant change in capital efficiency, as asset turnover has remained relatively stable. The trend implies that Li Auto's recent capital expenditures, particularly for its BEV transition, are not yet yielding returns, and the business model is currently destroying value on a return-on-capital basis.
Leverage Rises as Cash Reserves Decline
Li Auto's debt-to-equity ratio has nearly doubled from 0.23 in 2024Q4 to 0.45 in 2026Q2, while interest coverage has turned negative at -19.08x, suggesting a strategic shift toward debt financing as operating cash flows deteriorate, according to balance sheet data.
The increase in leverage appears to be a deliberate move to bolster liquidity as the company's cash position has eroded by over $50 billion from its 2023Q4 peak. While the absolute debt level remains manageable relative to the asset base, the negative interest coverage ratio indicates that current operating losses are insufficient to service the debt load. This dynamic warrants monitoring, as continued negative operating leverage could pressure the company's financial flexibility and increase refinancing risk if profitability does not recover.
Liquidity Buffer Erodes Amid Operational Burn
Despite a stable current ratio of 1.81, Li Auto's cash reserves have declined by over $50 billion from their 2023Q4 peak, with the remaining $40.1B as of 2026Q2 now representing a finite buffer against ongoing negative free cash flow, as reported in financial statements.
The company's liquidity position, while still adequate on a current ratio basis, is deteriorating in absolute terms due to consistent cash burn from operations and investments. The quick ratio of 1.65 indicates minimal dependence on inventory for liquidity, which is a positive, but the negative free cash flow margin of -5.1% in 2026Q2 means the cash runway is shortening. Investors should monitor the rate of cash consumption relative to the remaining balance to assess how long the company can fund its operations and strategic investments without needing to raise additional capital.
The Misleading Strength of the Current Ratio
The current ratio of 1.81 appears healthy but obscures the rapid erosion of the cash component within current assets, which has declined by over $50 billion, making it a poor standalone indicator of Li Auto's true liquidity resilience.
For a capital-intensive manufacturer like Li Auto, the current ratio is often misapplied as a primary liquidity metric because it includes inventory, which may not be easily liquidated in a downturn. The more critical trend is the absolute decline in cash and cash equivalents, which has fallen from over $90 billion to $40.1 billion in less than two years. Analysts should instead focus on the cash burn rate and the cash conversion cycle, which has swung to -94 days in 2026Q2, indicating that the company is now relying on stretching payables to fund operations—a less sustainable source of liquidity than its historical cash reserves.