Tesla Inc is a player in the EV industry that is lower by 3.97% Thursday.InvestorsObserver gives Tesla Inc (TSLA) a weak valuation score of 35 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. TSLA currently holds a better value than 35% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
TSLA gets a 35 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TSLA!
TSLA has a trailing twelve month Price to Earnings (PE) ratio of 103.9. The historical average of roughly 15 shows a poor value for TSLA stock as investors are paying higher share prices relative to the company's earnings. TSLA's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.77 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
TSLA has a 12 month forward PE to Growth (PEG) ratio of 2.46. Markets are overvaluing TSLA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.76999998's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
Summary
TSLA's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. TSLA's PE and PEG are worse than the market average resulting in a below average valuation score.
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