A Hybrid Sum-of-the-Parts Valuation of Multi-Business Automobile Manufacturers: Evidence from SAIC Motor

DOI

10.2991/978-94-6239-825-2_39How to use a DOI?

Keywords

Multi-business enterprise; Sum-of-the-parts valuation; FCFF; Market multiples; SAIC Motor

Abstract

The transition from internal-combustion vehicles to new-energy vehicles has turned many automobile manufacturers into multi-business enterprises whose units differ in life cycle, growth and risk. A single valuation method may therefore conceal economically important differences. This paper develops a hybrid sum-of-the-parts framework and applies it to SAIC Motor at 31 December 2022. The group is decomposed into traditional-vehicle, new-energy-vehicle and financial-service units. The mature traditional-vehicle unit is valued with a free-cash-flow-to-the-firm model, while the growing new-energy unit and the financial unit are valued with price-to-sales and price-to-earnings multiples, respectively. The estimated equity values are RMB 110.173 billion, RMB 93.863 billion and RMB 18.599 billion, giving a combined value of RMB 222.635 billion. This is 35.34% above the contemporaneous market capitalisation of RMB 164.497 billion. The case supports matching valuation methods to business-unit characteristics, while also showing that growth, comparable-company and data-reconciliation assumptions materially affect the result.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhiyang Chen
PY  - 2026
DA  - 2026/11/10
TI  - A Hybrid Sum-of-the-Parts Valuation of Multi-Business Automobile Manufacturers: Evidence from SAIC Motor
BT  - Proceedings of the 2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)
PB  - Atlantis Press
SP  - 397
EP  - 404
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-825-2_39
DO  - 10.2991/978-94-6239-825-2_39
ID  - Chen2026
ER  -