Share count
2.1Bpeak FY2025
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LI, Li Auto Inc.
Li Auto Inc. is a company incorporated outside China.
The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts and properties of an enterprise.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
CN¥112.3B
−22.3% YoY · 64% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue CN¥112.3B 5-yr avg CN¥90.6B
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Operating margin has run around −3.8% through the cycle on a 19% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Read this kind of business on volume, mix and the cost of the platform. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −2%, above 15% in 1 of 5 years). The steadier read is owner earnings: roughly 14% of revenue reaches owners as cash, though it swings. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2019–2025
realized figures from each filing · older years to the left| 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| CN¥284M | CN¥9.5B | CN¥27.0B | CN¥45.3B | CN¥123.9B | CN¥144.5B | CN¥112.3B | CN¥112.3B | RevenueRevenue |
| −0% | 16% | 21% | 19% | 22% | 21% | 19% | 19% | Gross marginGross mgn |
| (CN¥1.9B) | (CN¥669M) | (CN¥1.0B) | (CN¥3.7B) | CN¥7.4B | CN¥7.0B | (CN¥521M) | (CN¥521M) | Operating incomeOp. inc. |
| −653.6% | −7.1% | −3.8% | −8.1% | 6.0% | 4.9% | −0.5% | −0.5% | Operating marginOp. mgn |
| (CN¥2.4B) | (CN¥152M) | (CN¥321M) | (CN¥2.0B) | CN¥11.8B | CN¥8.0B | CN¥1.1B | CN¥1.1B | Net incomeNet inc. |
| — | — | — | — | — | 14% | 12% | 12% | Effective tax rateTax rate |
| Cash flow & returns | ||||||||
| (CN¥1.8B) | CN¥3.1B | CN¥8.3B | CN¥7.4B | CN¥50.7B | CN¥15.9B | (CN¥8.6B) | (CN¥8.6B) | Operating cash flowOp. cash |
| CN¥116M | CN¥321M | CN¥590M | CN¥1.2B | CN¥1.8B | CN¥3.1B | CN¥4.6B | CN¥4.6B | DepreciationDeprec. |
| CN¥528M | CN¥3.0B | CN¥8.1B | CN¥8.2B | CN¥37.1B | CN¥4.8B | (CN¥14.4B) | (CN¥14.4B) | Working capital & otherWC & other |
| CN¥953M | CN¥675M | CN¥3.4B | CN¥5.1B | CN¥6.5B | CN¥7.7B | CN¥4.2B | CN¥4.2B | CapexCapex |
| 335.1% | 7.1% | 12.8% | 11.3% | 5.3% | 5.4% | 3.7% | 3.7% | Capex / revenueCapex/rev |
| (CN¥1.9B) | CN¥2.8B | CN¥7.7B | CN¥6.2B | CN¥48.9B | CN¥12.9B | (CN¥12.8B) | (CN¥12.8B) | Owner earningsOwner earn. |
| −671.7% | 29.8% | 28.7% | 13.6% | 39.5% | 8.9% | −11.4% | −11.4% | Owner earnings marginOE mgn |
| (CN¥2.7B) | CN¥2.5B | CN¥4.9B | CN¥2.3B | CN¥44.2B | CN¥8.2B | (CN¥12.8B) | (CN¥12.8B) | Free cash flowFCF |
| −965.9% | 26.1% | 18.1% | 5.0% | 35.7% | 5.7% | −11.4% | −11.4% | Free cash flow marginFCF mgn |
| — | -2% | -4% | -18% | — | 46% | -2% | -2% | ROICROIC |
| — | -1% | -1% | -5% | 20% | 11% | 2% | 2% | Return on equityROE |
| — | −1% | −1% | −5% | 20% | 11% | 2% | 2% | Retained to equityRetained/eq |
| Balance sheet | ||||||||
| CN¥1.3B | CN¥8.9B | CN¥27.9B | CN¥56.5B | CN¥93.0B | CN¥72.0B | CN¥62.9B | CN¥62.9B | Cash & investmentsCash+inv |
| CN¥8M | CN¥116M | CN¥121M | CN¥48M | CN¥144M | CN¥135M | CN¥120M | CN¥120M | ReceivablesReceiv. |
| CN¥518M | CN¥1.0B | CN¥1.6B | CN¥6.8B | CN¥6.9B | CN¥8.2B | CN¥8.8B | CN¥8.8B | InventoryInvent. |
| CN¥526M | CN¥1.2B | CN¥1.7B | CN¥6.9B | CN¥7.0B | CN¥8.3B | CN¥8.9B | CN¥8.9B | Operating working capitalOper. WC |
| CN¥5.1B | CN¥31.4B | CN¥52.4B | CN¥67.0B | CN¥114.5B | CN¥126.3B | CN¥115.3B | CN¥115.3B | Current assetsCur. assets |
| CN¥4.7B | CN¥4.3B | CN¥12.1B | CN¥27.4B | CN¥72.7B | CN¥69.2B | CN¥63.5B | CN¥63.5B | Current liabilitiesCur. liab. |
| 1.1× | 7.3× | 4.3× | 2.4× | 1.6× | 1.8× | 1.8× | 1.8× | Current ratioCurr. ratio |
| — | — | — | CN¥5M | CN¥5M | CN¥5M | CN¥5M | CN¥5M | GoodwillGoodwill |
| CN¥9.5B | CN¥36.4B | CN¥61.8B | CN¥86.5B | CN¥143.5B | CN¥162.3B | CN¥154.3B | CN¥154.3B | Total assetsAssets |
| — | CN¥512M | CN¥6.0B | CN¥9.6B | CN¥8.7B | CN¥8.2B | CN¥3.3B | CN¥10.3B | Total debtDebt |
| — | (CN¥8.4B) | (CN¥21.9B) | (CN¥46.9B) | (CN¥84.3B) | (CN¥63.8B) | (CN¥59.6B) | (CN¥52.6B) | Net debt / (cash)Net debt |
| -22.2× | -10.0× | -16.1× | -34.4× | 85.9× | 37.4× | -3.1× | -6.0× | Interest coverageInt. cov. |
| (CN¥5.7B) | CN¥29.8B | CN¥41.1B | CN¥44.9B | CN¥60.1B | CN¥70.9B | CN¥72.6B | CN¥72.6B | Shareholders’ equityEquity |
| Per share | ||||||||
| 255M | 870M | 1.85B | 1.94B | 2.12B | 2.13B | 2.14B | 2.03B | Shares out (diluted)Shares |
| CN¥1.12 | CN¥10.87 | CN¥14.57 | CN¥23.33 | CN¥58.55 | CN¥67.84 | CN¥52.42 | CN¥55.39 | Revenue / shareRev/sh |
| CN¥-9.56 | CN¥-0.17 | CN¥-0.17 | CN¥-1.05 | CN¥5.58 | CN¥3.78 | CN¥0.53 | CN¥0.56 | EPS (diluted)EPS |
| CN¥-7.49 | CN¥3.24 | CN¥4.18 | CN¥3.18 | CN¥23.11 | CN¥6.05 | CN¥-5.98 | CN¥-6.32 | Owner earnings / shareOE/sh |
| CN¥-10.77 | CN¥2.83 | CN¥2.64 | CN¥1.16 | CN¥20.89 | CN¥3.85 | CN¥-5.98 | CN¥-6.32 | Free cash flow / shareFCF/sh |
| CN¥3.74 | CN¥0.78 | CN¥1.86 | CN¥2.64 | CN¥3.08 | CN¥3.63 | CN¥1.96 | CN¥2.07 | Cap. spending / shareCapex/sh |
| CN¥-22.25 | CN¥34.26 | CN¥22.16 | CN¥23.11 | CN¥28.43 | CN¥33.29 | CN¥33.89 | CN¥35.81 | Book value / shareBVPS |
The diluted share count moved ×3.41 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×2.13 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 6-yr | 5-yr | |
|---|---|---|
| Revenue / share | +90.0%/yr | +37.0%/yr |
| Capital spending / share | −10.2%/yr | +20.4%/yr |
| Book value / share | — | −0.2%/yr |
The record, charted
FY2018–2025Each measure over its full record; the current point and the worst year marked.
ROIC
−2%low FY2022
Gross margin
19%low FY2019
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
(CN¥12.8B)owner earningsvs.CN¥1.1Bnet incomelow FY2025
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2020FY2024
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business reported CN¥1.1B of profit but (CN¥12.8B) of owner earnings: CN¥14.0B less than the profit line, taken out by capital spending and the timing of cash.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | CN¥1.1B | CN¥8.0B | CN¥11.8B | (CN¥2.0B) | (CN¥321M) |
| Depreciation & amortizationnon-cash charge added back | +CN¥4.6B | +CN¥3.1B | +CN¥1.8B | +CN¥1.2B | +CN¥590M |
| Working capital & othertiming of cash in and out, other non-cash items | −CN¥14.4B | +CN¥4.8B | +CN¥37.1B | +CN¥8.2B | +CN¥8.1B |
| Cash from operations | (CN¥8.6B) | CN¥15.9B | CN¥50.7B | CN¥7.4B | CN¥8.3B |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −CN¥4.2B | −CN¥3.1B | −CN¥1.8B | −CN¥1.2B | −CN¥590M |
| Owner earnings | (CN¥12.8B) | CN¥12.9B | CN¥48.9B | CN¥6.2B | CN¥7.7B |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | −CN¥4.7B | −CN¥4.7B | −CN¥3.9B | −CN¥2.9B |
| Free cash flow | (CN¥12.8B) | CN¥8.2B | CN¥44.2B | CN¥2.3B | CN¥4.9B |
| Owner-earnings marginowner earnings ÷ revenue | -11% | 9% | 39% | 14% | 29% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -6.0×Does not cover its interestOperating income (CN¥521M) ÷ interest expense CN¥86M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- How heavy is the debt, net of cash? +CN¥52.6BNet cashCash CN¥56.7B + ST investments CN¥6.2B − debt CN¥10.3B
What this means
Cash and short-term investments exceed every dollar of debt by CN¥52.6B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Below average through the cycle5-yr median, range -18%–46%; -2% latest = NOPAT (CN¥458M) ÷ invested capital CN¥26.2BIndustry peers: median 6%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 5 years (it ran -2% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Solid through the cycle7-yr median margin, range -672%–39%; latest (CN¥12.8B) = operating cash (CN¥8.6B) − maintenance capex CN¥4.2BIndustry peers: median 8%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -11% of revenue this year, a 14% median across 7 years.
- Are earnings backed by cash? -7.56×Thinly cash-backedCash from ops (CN¥8.6B) ÷ net income CN¥1.1B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.91×MaintainingCapex CN¥4.2B ÷ depreciation CN¥4.6B
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 4 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · CN¥112.3B
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity NearCurrent ratio ≥ 2× · 1.81×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · CN¥10.3B vs CN¥51.7B WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (8-yr record) · 5 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are CN¥3.45/share (latest year CN¥0.56), the averaged base the calculator's gate runs on, and book value is CN¥35.81/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2019–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 3 of 7
What this means
Lost money in 4 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 1 of 5 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −221% → 3% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about −221% early to 3% lately, median −4% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Owner earnings growth −37%/yr
What this means
Owner earnings shrank about 37% a year over the record.
- Worst year 2019 · −653.6% op. margin
What this means
Operations went underwater in 2019, understand why before trusting the good years.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsCN¥115.3B
- Cash & short-term investmentsCN¥62.9B
- ReceivablesCN¥120M
- InventoryCN¥8.8B
- Other current assetsCN¥43.6B
Current liabilitiesCN¥63.5B
- Debt due within a yearCN¥7.0B
- Other current liabilitiesCN¥56.6B
Current ratio1.81×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.68×stricter: inventory excluded
Cash ratio0.99×strictest: cash alone against what's due
Working capitalCN¥51.7Bthe cushion left after near-term bills
Debt due this year vs. cashCN¥7.0B due · CN¥62.9B cash
covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet
Cash runway4.9 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Deeper floors
Tangible book valueCN¥71.4Bequity stripped of goodwill & intangibles
Net current asset valueCN¥34.1BGraham's net-net: current assets less all liabilities
Debt incl. operating leasesCN¥12.0BCN¥1.7B of it operating leases
Deferred revenueCN¥1.6Bcustomer cash collected before delivery; operating float
From the company's latest filing.
How the cash was used, 2018–2025
Over the record, the business generated CN¥73.7B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.
- ReinvestedCN¥29.6B · 40%
- Retained (debt / cash)CN¥44.1B · 60%
- Net change in share count695.2%
The diluted count rose from 255M to 2028M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
- Return on what it retained114%
Of the earnings it kept rather than paid out (CN¥14.5B over the span), annual owner earnings (first three years vs last three) grew CN¥16.5B, so each retained CN¥1 added about 1.14 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Inverting the record
Invert: instead of why Li Auto Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2018–2025.
2 of the 3 tests turned up something to look into; the other 1 came back clean.
- Look hereIs it less profitable than it was?12.3% vs 24.0%
The owner-earnings margin averaged 24.0% early in the record and 12.3% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
- Look hereDid the share count rise anyway?695.2%
Diluted shares grew 695.2% over 2018–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.
And these came back clean
- Did reported profit become cash?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Income taxes, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Automobiles
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| FFord Motor Company | $187.3B | 15% | 3.0% | — | 7% |
| GMGeneral Motors Company | $168.0B | 11% | 5.9% | 4% | 6% |
| LILi Auto Inc. | CN¥112.3B | 19% | -3.8% | -2% | 14% |
| TSLATesla Inc. | $94.8B | 19% | 5.5% | 6% | 10% |
| BABoeing Company (The) | $89.5B | 6% | -1.8% | -8% | 1% |
| RTXRTX Corporation | $88.6B | 65% | 8.2% | 5% | 8% |
| LMTLockheed Martin Corporation | $75.0B | 13% | 12.9% | 34% | 9% |
| PCARPACCAR Inc. | $28.4B | 21% | 11.6% | 23% | 11% |
| Group median | — | 17% | 5.7% | 5% | 8% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American depositary shares, each representing two Class”; Li Auto Inc. reports in CNY, so every figure in this tool is stated per ADS and translated at CNY 1 = $0.147 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in CNY.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Li Auto Inc. has delivered.
Li Auto Inc.’s latest year shows negative owner earnings, below the record’s own through-cycle owner earnings. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
$
Through the cycle, Li Auto Inc. earns about $3.5B on its 21.2% median owner-earnings margin. This year’s −11.4% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25−75%/yr
Owner-earnings growth, delivered—
Owner-earnings growth · ’19→’25−37%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings ($1.9B) on 1014M shares outstanding, the balance-sheet count at 2025-12-31; net cash $7.8B. The base opens on the through-cycle figure (the latest year sits off the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Li Auto Inc. (LI), the owner's record," https://ownerscorecard.com/c/LI, data as of 2026-07-09.
Manual order: ← LGO its page in the Manual LICN →
Industry order: ← LCID the Automobiles chapter LOT →