Giving a thought of investing in Xiaomi (XIACY) - The Apple + Tesla of China

u/Outside_Use3456 · Reddit — r/ValueInvesting · January 20, 2026 at 04:39 · ⬆ 28 pts · 💬 32 comments  | View on Reddit ↗
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Author argues Xiaomi is undervalued given its smartphone, IoT, and EV businesses, with a $64/share target within two years.

XIACY — LONG The author argues Xiaomi is highly undervalued at a ~$120B market cap and forward P/E of 18.87, low for a tech company, given its combined smartphone, IoT, and EV (SU7, YU7) businesses. The mechanism is that global EV expansion (Europe entry in 2027), rising smartphone market share, and IoT growth should drive the stock toward $64/share within two years from the current $23.59. The author cites Xiaomi's $6B free cash flow as fuel to build a market moat. No specific risk is stated.

it’s valuation is highly undervalued with merely 120 billion dollars market cap and a forward P/E of 18.87, which is particularly low as a tech company

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u/Outside_Use3456 Reddit r/ValueInvesting
Xiaomi undervalued; EV and IoT growth to $64
The author argues Xiaomi is highly undervalued at a ~$120B market cap and forward P/E of 18.87, low for a tech company, given its combined smartphone, IoT, and EV (SU7, YU7) businesses. The mechanism is that global EV expansion (Europe entry in 2027), rising smartphone market share, and IoT growth should drive the stock toward $64/share within two years from the current $23.59. The author cites Xiaomi's $6B free cash flow as fuel to build a market moat. No specific risk is stated.
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This Reddit post, published January 20, 2026, features u/Outside_Use3456 discussing XIACY. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Outside_Use3456  · Tickers: XIACY