Xiaomi (SEHK:1810) Looks Undervalued On Paper, Is It Really A Bargain?

Xiaomi (SEHK:1810) stock has drawn attention after recent trading performance showed mixed returns. The share price is around HK$25.88, with the company’s different business segments giving investors several angles to assess its current valuation.

See our latest analysis for Xiaomi.

Recent trading in Xiaomi reflects pressure on the share price over 2026, with the 90 day share price return down 15.54% and the year to date share price return down 35.75%, even though the 3 year total shareholder return is 128.62%.

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For Xiaomi, the recent share price slide could be read as a verdict on its smartphone and IoT fundamentals, or as sentiment whiplash after a strong multi year run. The valuation numbers help separate those two stories next.

Most Popular Narrative: 37.1% Undervalued

The most followed valuation narrative for Xiaomi puts fair value at HK$41.16, well above the last close of HK$25.88. This frames the recent pullback in a very different light.

Xiaomi should be viewed as a hybrid multiple business model:

• Hardware (smartphones, IoT): lower-margin, high scale

• Services (internet): high-margin recurring

• EV + AI: high-growth optionality

This creates a sum-of-the-parts valuation profile, with EV and AI acting as long-term re-rating drivers.

Read the complete narrative.

Want to see how this Xiaomi thesis joins smartphones, EVs and internet services into one price tag? The narrative leans on strong margin assumptions and a richer profit mix. It explores which segment carries most of the valuation weight and how growth is distributed across the ecosystem.

Result: Fair Value of HK$41.16 (UNDERVALUED)

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

However, the Xiaomi narrative still faces pressure from intense competition on smartphone margins, as well as the high capital demands and execution risk in its EV expansion.

Find out about the key risks to this Xiaomi narrative.

Next Steps

The Xiaomi debate clearly involves strong views on both risks and rewards. Move quickly, review the key data points, and weigh them against the 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Xiaomi?

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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.

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