WeRide (WRD) drew fresh attention after announcing a partnership with Uber Technologies and AVOMO to launch Spain’s first commercial Robotaxi pilot in Madrid, marking a significant step in its European expansion.

Despite the Madrid Robotaxi announcement and recent share repurchase plans, WeRide’s stock has been under pressure in 2026, with a year to date share price return down 22.79% and a 1 year total shareholder return down 17.14%. However, the 90 day share price return of 13.81% suggests some momentum has started to rebuild in recent months.

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With shares still down so far in 2026, while analysts’ average price target sits well above the last close and intrinsic value screens point to a discount, is WeRide quietly on sale or already pricing in its next leg of growth?

Most Popular Narrative: 52.4% Undervalued

At a last close of $7.25 versus a narrative fair value of $15.22, WeRide’s valuation gap stands out and frames the recent Madrid Robotaxi news in a very different light.

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 see what is baked into that price gap? The narrative focuses on rapid revenue expansion, margin repair and a future earnings multiple that would raise eyebrows.

Result: Fair Value of $15.22 (UNDERVALUED)

However, this hinges on regulators staying supportive and ride hailing partners delivering high utilization, while heavy R&D and global expansion spending keep pressure on losses.

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Another Angle on Valuation

The narrative fair value of $15.22 paints WeRide as undervalued, but the current P/S ratio of 22.3x tells a different story. That is far above the US Auto Components industry at 0.8x, the peer average at 0.6x, and even the fair ratio of 5x, which lifts valuation risk if sentiment cools.

For a stock trading this far above its fair ratio, understanding exactly what the numbers imply for future expectations can help you decide whether the premium feels justified or stretched, especially if growth or adoption assumptions shift from here. It is worth comparing both sides of the argument before acting.See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals across price, valuation and sentiment, it is worth reviewing the details yourself and deciding where you stand while the market is still debating the story. You can start with the 2 key rewards and 2 important warning signs.

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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.