WeRide (WRD) stock is in focus after the company expanded its collaboration with Lenovo at Auto China 2026. The partners are targeting the joint deployment of 200,000 Level 4 autonomous vehicles globally over five years.

Despite the high profile Lenovo partnership and the upcoming AGM in June 2026, momentum in WeRide’s share price has been weak. The latest close was $7.39 and the year to date share price return was a decline of 21.3%, while the 1 year total shareholder return showed a decline of 10.64%, indicating pressure over both shorter and longer horizons.

If WeRide’s autonomous driving plans have caught your attention, it can be useful to compare them with other automation opportunities using our curated list of 32 robotics and automation stocks

With WeRide trading at $7.39, showing a 21.3% decline year to date despite ambitious Lenovo-backed deployment targets, the key question is whether the stock is now undervalued or whether the market is already pricing in potential future growth.

Most Popular Narrative: 51.4% Undervalued

The most followed narrative suggests a fair value of $15.22 for WeRide, compared with the latest close at $7.39, putting a lot of weight on future growth translating into earnings over time.

The dual deployment of L4 robotaxis and L2+ WePilot 3.0 ADAS in mass production vehicles from Chery EXEED and GAC allows data and software to be reused across product lines. This can spread R&D spending over a larger revenue base and potentially support higher group level margins.

Want to understand why this narrative sees such a large gap to today’s price? It leans heavily on rapid revenue expansion, margin repair and a premium future earnings multiple. Curious which specific growth and profitability assumptions sit underneath that headline fair value? The full narrative lays out the step by step path the numbers are built on.

Result: Fair Value of $15.22 (UNDERVALUED)

However, this hinges on regulators maintaining momentum and rider adoption meeting utilization targets, as slower permits or weaker demand could leave losses and valuation assumptions exposed.

Another View: Rich Sales Multiple Sends A Different Signal

The DCF work suggests WeRide is trading 83.6% below an estimated fair value of $45.04, which paints a strong undervaluation story. However, the P/S ratio of 24.6x is far higher than the US Auto Components industry average of 0.7x and a fair ratio of 5.4x, which points to a lot of optimism already in the price. If sentiment on autonomous driving cools, how comfortable are you with that gap?

For a closer look at how that sales multiple stacks up against peers and the fair ratio the market could move toward, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With the mixed signals in this article, it may be useful to move quickly and review the underlying data yourself. This will allow you to decide how compelling the risk reward trade off really looks using 2 key rewards and 2 important warning signs

Ready for more investment ideas?

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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.