Tesla Stock Valuation

TSLA
 Stock
  

USD 188.31  5.45  2.98%   

Do you wonder what the value of Tesla Inc is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Tesla, is its stock price multiplied by the total number of shares outstanding, calculating Tesla's enterprise value requires a different approach. It uses Tesla's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Tesla Enterprise Value is projected to increase significantly based on the last few years of reporting. The past year's Enterprise Value was at 29.39 Billion. The current year Tangible Asset Value is expected to grow to about 7.8 B, whereas Free Cash Flow is forecasted to decline to (2.5 B).
Tesla Inc has a current Real Value of $359.92 per share. The regular price of the company is $188.31. At this time, the company appears to be undervalued. Our model measures the value of Tesla Inc from inspecting the company fundamentals such as Operating Margin of 21.34 %, shares outstanding of 3.16 B, and Return On Equity of 32.24 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Tesla Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Tesla's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Tesla Most Recent Valuation Data

Price Book
14.52
EPS Estimate Next Quarter
1.28
Address
13101 Tesla Road, Austin, TX, United States, 78725
Price Sales
7.71
EBITDA
16 B
Beta
1.97
Undervalued
Today 188.31
Please note that Tesla's price fluctuation is very steady at this time. Calculation of the real value of Tesla Inc is based on 3 months time horizon. Increasing Tesla's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Tesla Inc is useful when determining the fair value of the Tesla stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Tesla. Since Tesla is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tesla Stock. However, Tesla's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
164.57
Downside
359.92
Real Value
363.55
Upside
Estimating the potential upside or downside of Tesla Inc helps investors to forecast how Tesla stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tesla more accurately as focusing exclusively on Tesla's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
4.124.424.79
Details
Hype
Prediction
LowEstimated ValueHigh
176.63180.26183.89
Details
Naive
Forecast
LowNext ValueHigh
177.24180.87184.50
Details
21 Analysts
Consensus
LowTarget PriceHigh
159.00907.541,580
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Tesla's intrinsic value based on its ongoing forecasts of Tesla's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Tesla's closest peers. When choosing an evaluation method for Tesla Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Tesla Investments

26.36 Million

Tesla Valuation Drivers Correlation

Many accounts on the financial statements of Tesla Inc are highly interrelated and sometimes correlated. Consequently, when conducting Tesla's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Tesla
Click cells to compare fundamentals

Tesla Valuation Trend

Knowing Tesla's actual value is paramount for traders to make sound investment determinations. Tesla's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Tesla's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Tesla's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Tesla Market Cap

Tesla Inc is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Auto Manufacturers industry is at this time estimated at about 1.3 Trillion. Tesla totals roughly 578.5 Billion in market capitalization claiming about 45% of stocks in Auto Manufacturers industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Tesla Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Tesla's current stock value. Our valuation model uses many indicators to compare Tesla value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Tesla competition to find correlations between indicators driving Tesla's intrinsic value. More Info.
Tesla Inc is currently regarded as top stock in price to sales category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about  1.88  of Price to Book per Price to Sales. As of November 28, 2022, Price to Book Value is expected to decline to 23.80. Comparative valuation analysis is a catch-all model that can be used if you cannot value Tesla by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tesla's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Tesla's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Tesla's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Tesla and how it compares across the competition.

About Tesla Valuation

The stock valuation mechanism determines the current worth of Tesla Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Tesla Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Tesla Inc based exclusively on its fundamental and basic technical indicators. By analyzing Tesla's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Tesla's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Tesla. We calculate exposure to Tesla's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Tesla's related companies.
Fiscal Year End
December
Industry
Auto Manufacturers
Concentration
Automobile Manufacturers
Full Time Employees
99.3 K
Service Category
Automobiles
Employer Id Number
91-2197729
Last ReportedProjected for 2022
Gross Profit831.2 M896.8 M
Profit Margin 10.25  11.07 

Tesla Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Tesla does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.95
Earnings Quarterly Growth103.50%
Revenue Growth55.90%
Enterprise Value To Ebitda32.71
Earnings Growth97.70%
Enterprise Value To Revenue6.98

Tesla Current Valuation Indicators

Valuation refers to the process of determining the present value of Tesla Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Tesla we look at many different elements of the entity such as Tesla's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Tesla's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Tesla's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Tesla, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Tesla's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Tesla's worth.
Additionally, take a look at World Market Map. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for analysis

When running Tesla Inc price analysis, check to measure Tesla's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Tesla is operating at the current time. Most of Tesla's value examination focuses on studying past and present price action to predict the probability of Tesla's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Tesla's price. Additionally, you may evaluate how the addition of Tesla to your portfolios can decrease your overall portfolio volatility.
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Is Tesla's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tesla. If investors know Tesla will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tesla listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.98
Market Capitalization
577.4 B
Quarterly Revenue Growth YOY
0.56
Return On Assets
0.12
Return On Equity
0.32
The market value of Tesla Inc is measured differently than its book value, which is the value of Tesla that is recorded on the company's balance sheet. Investors also form their own opinion of Tesla's value that differs from its market value or its book value, called intrinsic value, which is Tesla's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tesla's market value can be influenced by many factors that don't directly affect Tesla's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tesla's value and its price as these two are different measures arrived at by different means. Investors typically determine Tesla value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tesla's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.