TSLA: Tesla Inc Stock Price, Quote and News

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks. Companies with a positive P/E ratio bellow 10 are generally seen as “value stocks” meaning that the company is already very profitable and unlikely to strong growth in the future. Tesla, Inc. is an American company that manufactures and sells electric cars, as well as power storage and photovoltaic systems.

And that doesn’t include the four stocks on the index that have negative PEG values due to expected declining earnings. Bears love to argue that the company is massively overvalued, saying it’s driven mostly by hype, and in some ways that charge makes sense.

When you factor in growth, the auto stock is actually very reasonably priced.

We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. The stock price has increased by +19.91% in the last 52 weeks. The beta is 2.18, so Tesla’s price volatility has been higher than the market average.

The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. The Price/Earnings ratio measures the relationship between a company’s stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative P/E ratio stands for a company that is generating heavy losses compared to its current valuation. The flaw with the P/E ratio though is that it ignores a company’s future growth, which is often the most important factor in determining its value. A PE Ratio is a price to earnings ratio that has historically helped investors define fair value.

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PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

TSLA has a trailing twelve month Price to Earnings ratio of 97.4 which places it above the histroical average of roughly 15. TSLA is currently trading at a poor value due to investors paying more than what the stock is worth in relation https://business-accounting.net/ to its earnings. TSLA’s trailing-12-month earnings per share of 7.38 does not justify its share price in the market. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund.

Tesla Inc Split For TSLA.BA – Ratio 3-1

Please click on the following links to see related term pages. Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company’s balance sheet. For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10. There are at least three kinds of PE Ratios used by different investors.

• These returns cover a period from January 1, 1988 through July 4, 2022.
• A PE Ratio is a price to earnings ratio that has historically helped investors define fair value.
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• Has probably been the biggest success story on the stock market in the last few years.
• Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.

However, the fact remains that a PE ratio reveals how much an investor is willing to pay for the earnings of a company at any given time. The higher the PE multiple the more expensive a company may be, but that is not always true. The PE ratio simply reveals tsla pe ratio how many times earnings an investor is willing to pay, or that a shareholder is willing to maintain. In the last 12 months, operating cash flow was $14.08 billion and capital expenditures -$7.14 billion, giving a free cash flow of $6.94 billion.

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Data may be intentionally delayed pursuant to supplier requirements. When you factor in growth, the auto stock is actually very reasonably priced.

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Average PE multiples have been popularized in recent years because historical comparisons make current valuations look stretched. The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years. Tesla’s Earnings per Share for the trailing twelve months ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.77.

They’ve argued at one point or another that Tesla is bound for bankruptcy, its results are only propped up by government credits, or that competition will come along and wipe out its premium valuation. In the second quarter, value outperformed by the widest margin since the dot.com bubble collapse as growth stocks suffered their worst losses since 2008. Google’s parent company will have a fair value estimate of $180 after its 20-to-1 stock split. Inflation and the Fed could determine how long this change in stock market leadership lasts.

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• Tesla stock gets a bullish call from one Wall Street analyst after they spent time with the EV maker’s management.
• Tesla, Inc. designs, develops, manufactures, sells and leases fully electric vehicles and energy generation and storage systems, and offer services related to its products.
• The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock.
• That’s why we bring you HistoricalPERatio.com to make it easy for investors to investigate Tesla PE history or the past PE information for any stock in our coverage universe.

Companies with a P/E ratio over 30 or a negative one are generaly seen as “growth stocks” meaning that investors typically expect the company to grow or to become profitable in the future. To buy shares in Tesla you’ll need a share-dealing account with an online or offline stock broker. Once you have opened your account and transferred funds into it, you’ll be able to search and select shares to buy and sell. You can use Stockopedia’s share research software to help you find the the kinds of shares that suit your investment strategy and objectives. Many investors like to use the price-to-earnings ratio, which offers a good snapshot for how a company’s price compares to its current earnings.