One-glance verdict
Undervalued
$9.68 our estimate vs market $4.12
Wall Street consensus: $7.84 (-19.1% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
EHang Holdings Limited
EH · NGM · Industrials · Aerospace & Defense
Current price
$4.12
52-week range
$3.31 - $16.86
Market cap
$312.48M
Balance sheet
Healthy
-53.00x Concerning
Net cash $48.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -36.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 7.8% (peer median: 14.7%).
What this company does
EHang Holdings Limited
EHang Holdings designs and makes advanced drones, like those for carrying people or delivering goods, and the systems to control them and the places they land. Their main income comes from selling these drones and related services, which matters because it shows how much people are willing to pay for this new kind of air travel and logistics technology. They also offer software to manage these flying vehicles and their operations, contributing to their overall revenue streams.
How the company got here
EHang Holdings Limited was founded in 2014 with a vision to revolutionize air travel through autonomous aerial vehicles (AAVs). The company has focused on developing electric vertical takeoff and landing (eVTOL) aircraft, aiming to create a new era of urban air mobility. A key turning point for EHang was achieving certification for its EH216-S AAV from the Civil Aviation Administration of China (CAAC), marking a significant step towards commercial passenger operations. This certification validates their technology and opens doors for broader adoption in China and potentially other markets.
What it actually does
EHang designs, builds, and operates advanced drones, specifically focusing on electric vertical takeoff and landing (eVTOL) aircraft. Think of them as building the vehicles and the systems needed for a new kind of air taxi or delivery service within cities. Their technology aims to make air travel more accessible, efficient, and environmentally friendly for various purposes, from carrying people to delivering goods.
Autonomous Aerial Vehicle (AAV) Sales
This is EHang's core business where they sell their eVTOL aircraft, like the EH216 series, to customers. These customers might be tourism operators looking for unique aerial experiences, logistics companies needing faster delivery solutions, or even government entities for smart city management. The sale of these aircraft represents a significant portion of EHang's revenue, as it involves the high-value manufacturing of complex aerospace technology.
AAV Operations and Services
Beyond selling the aircraft, EHang also generates revenue by operating its AAVs and offering related services. This includes managing flight operations, providing maintenance, and developing the necessary infrastructure like vertiports (landing and takeoff spots for eVTOLs) and charging stations. This segment focuses on the ongoing use of their technology, creating recurring revenue streams and demonstrating the practical application of their eVTOLs for passenger transport and other services.
Aerial Media Solutions
EHang offers specialized services using their drone technology for aerial media, most notably drone light shows. These are large-scale, synchronized drone performances that create intricate patterns and images in the night sky, often used for entertainment events, celebrations, or promotional activities. This segment leverages EHang's expertise in drone control and coordination to provide a unique visual spectacle.
What management is betting on now
EHang's management is heavily focused on scaling up the commercial operations of their passenger-carrying eVTOLs, particularly in China, following their successful certification. They are investing in building out the necessary infrastructure, such as vertiports, and forging partnerships to establish a robust urban air mobility network. The company is also looking to expand the applications of its AAVs into areas like emergency medical services and cargo transport, aiming to diversify its revenue streams and solidify its position as a leader in the emerging eVTOL market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$16.30M
FY2025 Q4
$-46.82M
Revenue
$59.77M
Net income
$-39.47M
Diluted EPS
-0.27
Operating cash flow
$-25.67M
Free cash flow
$-46.82M
Fetching…
Sources
Revenue
$62.49M
Net income
$-31.48M
Diluted EPS
-0.23
Operating cash flow
$21.64M
Free cash flow
$16.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.68 vs current price $4.12
Wall Street consensus is the average analyst price target: $7.84 (-19.1% lower than our fair-value estimate).
Our most-likely fair value is $9.68 a share — about 135.0% above today's price of $4.12, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $48.6M - more cash than debt. Interest coverage -53.0x.
Net debt
$-48.56M
Interest coverage
-53.00x
EHang Holdings Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
EH
BASELINE
EHang Holdings Limited
Total debt $86.68M Interest coverage -53.00x This is the baseline the peer rows are being compared against.
Total debt $748.58M Interest coverage -6,098.23x Neither company has much profit cushion over interest right now.
Total debt $125.60M Interest coverage -729.30x Neither company has much profit cushion over interest right now.
Total debt $322.14M Interest coverage -22.23x Neither company has much profit cushion over interest right now.
Total debt $850.82M Interest coverage -12.52x Neither company has much profit cushion over interest right now.
Total debt $14.87M Interest coverage -970.67x Neither company has much profit cushion over interest right now.
What you should know
The case for and against EH
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -36.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 7.8% (peer median: 14.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-43.27x
P/B
2.31x
P/S
0.82x
EV/EBITDA
0.03x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
61.5%
Operating margin
-169.1%
Net margin
-91.3%
ROE
-36.5%
ROA
-13.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.64x
Current ratio
1.84x
Quick ratio
1.43x
Total debt
$86.68M
Total cash
$135.24M
Growth
How the business has been compounding
Revenue TTM
$145.23M
Revenue 5Y CAGR
60.9%
EPS TTM
-0.70
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-41.63M
Free CF TTM
$-46.82M
FCF margin
-32.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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