China Automotive Systems, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$31.87
Market Price
$4.63
Undervalued By
85.5%
Method: 10-year unlevered FCF DCF: $55M normalized FCF base (below the unusually strong $74.4M FY2025 figure, which followed a weak $9.8M operating-cash-flow 2024); 12% FCF growth years 1-5; 6% years 6-10; 14% discount rate (China small-cap/ADR-structure risk); 3% terminal growth; $169.7M net cash; 30.17M shares outstanding.
Reasoning: China Automotive Systems just posted record EPS and a sharp FCF rebound on EV-steering-system demand and carries a large net cash position relative to its market cap, but thin analyst coverage, China-based operations, and historical earnings volatility argue for a normalized (not peak) FCF base and an elevated discount rate.