Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit tesla pe ratio history margins at the peaks of the business cycles. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
What was Tesla’s highest PE ratio?
Tesla's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2022 was $3.62. Therefore, Tesla's PE Ratio for today is 49.81. During the past 13 years, the highest PE Ratio of Tesla was 1396.86.
Stalwart is a description of companies that have large capitalizations and provide investors with slow but steady and dependable growth prospects. PEG ratios greater than 1.0 are generally considered unfavorable, suggesting a stock is overvalued. Meanwhile, PEG ratios lower than 1.0 are considered better, indicating a stock is relatively undervalued. The PEG ratio provides useful information to compare companies and see which stock might be the better choice for an investor’s needs, as follows. When you factor in growth, the auto stock is actually very reasonably priced.
Tesla stock is reversing deeper and deeper into the mud slide as investors contemplate back-to-back recalls and a distracted CEO. Tesla’s earnings beat has shown that despite rising electricity prices and lowered demand – EVs are still in. The latest short interest is 87.00 million, so 2.75% of the outstanding shares have been sold short. The company has a current ratio of 1.53, with a Debt / Equity ratio of 0.07.
A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its trailing twelve months earnings. In general, a lower number or multiple is usually considered better than a higher one. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. The Price/Earnings ratio measures the relationship between a company’s stock price and its earnings per share.
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Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas. 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 Company’s automotive segment includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits. Its automotive products include Model 3, Model Y, Model S and Model X. Powerwall and Megapack are its lithium-ion battery energy storage products. Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle…
What was Tesla’s PE ratio last 5 years?
Analysis. Tesla's p/e ratio for fiscal years ending December 2018 to 2022 averaged 302.2x. Tesla's operated at median p/e ratio of 52.3x from fiscal years ending December 2018 to 2022. Looking back at the last 5 years, Tesla's p/e ratio peaked in December 2020 at 1,274.1x.
The degree to which a PEG ratio result indicates an over or underpriced stock varies by industry and by company type. As a broad rule of thumb, some investors feel that a PEG ratio below one is desirable. Not only does the average Dow stock trade at a significantly higher PEG ratio than Tesla, but 19 of the 26 companies above are also more expensive than Tesla based on the PEG ratio. In other words, when you factor in growth, Tesla is cheaper than your typical blue-chip stock. To buy shares in Tesla you’ll need a share-dealing account with an online or offline stock broker.
Tesla, McDonald’s And 3 Stocks To Watch Heading Into Monday
Tesla, Inc. is an American company that manufactures and sells electric cars, as well as power storage and photovoltaic systems. The company’s goal is to “accelerate the transition to sustainable energy”. The company name is based on the physicist and inventor Nikola Tesla. A negative PEG can result from either negative earnings , or a negative estimated growth rate. According to well-known investor Peter Lynch, a company’s P/E and expected growth should be equal, which denotes a fairly valued company and supports a PEG ratio of 1.0. When a company’s PEG exceeds 1.0, it’s considered overvalued while a stock with a PEG of less than 1.0 is considered undervalued.
- Company B is trading at a discount to its growth rate and investors purchasing it are paying less per unit of earnings growth.
- It also offers firmware-over-the-air updates, which most of its legacy competitors have been unable to match.
- A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
- Has probably been the biggest success story on the stock market in the last few years.
Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods. Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy.
Tesla Inc (TSLA) PE Ratio (TTM) Chart
Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer. The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share number. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure. As with any ratio, the accuracy of the PEG ratio depends on the inputs used. When considering a company’s PEG ratio from a published source, it’s important to find out which growth rate was used in the calculation.
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. The beta is 2.07, so Tesla’s price volatility has been higher than the market average. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.
To calculate the PEG ratio, an investor or analyst needs to either look up or calculate the P/E ratio of the company in question. The P/E ratio is calculated as the price per share of the company divided by the earnings per share , or price per share / EPS. The price/earnings to growth ratio is a stock’s price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period.
- The PEG ratio provides useful information to compare companies and see which stock might be the better choice for an investor’s needs, as follows.
- In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months.
- Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs.
- Intraday data delayed at least 15 minutes or per exchange requirements.
- In the last 12 months, operating cash flow was $14.72 billion and capital expenditures -$7.16 billion, giving a free cash flow of $7.56 billion.
Many investors may look at Company A and find it more attractive since it has a lower P/E ratio among the two companies. But compared to Company B, it doesn’t have a high enough growth rate to justify its current P/E. Company B is trading at a discount to its growth rate and investors purchasing it are paying less per unit of earnings growth. Based on its lower PEG, Company B may be relatively the better buy. While a low P/E ratio may make a stock look like a good buy, factoring in the company’s growth rate to get the stock’s PEG ratio may tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its future earnings expectations.