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    Assessing Hesai Group (NasdaqGS:HSAI) Valuation After Profitability Milestone And New Partnerships

    Simply Wall St·03/26/2026 19:04:18
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    Interest in Hesai Group (HSAI) has picked up after the company reported full year 2025 GAAP net income of CN¥435.88 million, along with new partnerships with NVIDIA’s automotive platform and Grab.

    See our latest analysis for Hesai Group.

    Despite the earnings milestone and new partnerships, the recent 7 day share price return of a 18.65% decline and 30 day share price return of a 27.92% decline suggest fading short term momentum. However, the 3 year total shareholder return of 31.81% points to a stronger longer term picture.

    If this LiDAR story has caught your attention, it could be a good moment to scan for other robotics and automation names using our 33 robotics and automation stocks

    With Hesai now profitable, a 32% intrinsic discount flag, and the share price sliding 28% over 30 days, the key question is simple: are you looking at an undervalued LiDAR leader or a market already pricing in future growth?

    Most Popular Narrative: 38.7% Undervalued

    Hesai Group's most followed narrative pegs fair value at $32.37 versus the last close of $19.85, using an 8.83% discount rate to frame that gap.

    The projection of 2025 LiDAR shipments reaching 1.2 million to 1.5 million units, with nearly 200,000 high margin robotic LiDAR units, is expected to significantly boost revenue. Anticipated net revenues of RMB 3 billion to RMB 3.5 billion for 2025, driven by strong demand and mass market adoption, indicate potential growth in revenue.

    Read the complete narrative.

    Curious what sits behind that valuation gap? The narrative focuses on three main elements: aggressive revenue expansion, rising profitability, and a richer future earnings multiple. The exact mix matters.

    Result: Fair Value of $32.37 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this hinges on Hesai converting projected demand into actual orders, and any delay in client adoption or slower robotics uptake could quickly challenge that undervalued thesis.

    Find out about the key risks to this Hesai Group narrative.

    Another View: High P/E Signals a Very Different Story

    That 38.7% undervaluation call sits awkwardly next to Hesai Group's current P/E of 49.4x, compared with 17.2x for the US Auto Components industry, 16.8x for peers, and a 43.6x fair ratio. If sentiment shifts, does the market pull the share price closer to those lower benchmarks instead?

    See what the numbers say about this price — find out in our valuation breakdown.

    NasdaqGS:HSAI P/E Ratio as at Mar 2026
    NasdaqGS:HSAI P/E Ratio as at Mar 2026

    Next Steps

    With both risks and rewards in play for Hesai, it makes sense to examine the details yourself and move quickly to form a balanced view using the 4 key rewards and 1 important warning sign

    Looking for more investment ideas?

    If Hesai has sparked your interest, do not stop here. Broaden your watchlist now and make sure you are seeing opportunities across different types of companies.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.