tsla pe ratio

Has probably been the biggest success story on the stock market in the last few years. Even after a pullback this year, the stock is up 1,500% over the past three years, rewarding investors who held through a volatile period with 16x gains. Provide specific products and services to you, such as portfolio management or data aggregation. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. And now accounts for about 35% of the market cap of all auto makers in the world.

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.

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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 margins at the peaks of the business cycles.

How long did the 2008 market crash take to recover?

The S&P 500 dropped nearly 50% and took seven years to recover. 2008: In response to the housing bubble and subprime mortgage crisis, the S&P 500 lost nearly half its value and took two years to recover. 2020: As COVID-19 spread globally in February 2020, the market fell by over 30% in a little over a month.

The Price to Earnings Ratio is calculated by taking the stock price / EPS . This metric is considered a valuation metric that confirms whether the earnings of a company justifies the stock price. There isn’t necesarily an optimum PE ratio, since different industries will have different ranges of PE Ratios. Because of this, PE Ratio is great to evaluate from a relative standpoint with other similar companies. For self directed investors doing their due diligence on TSLA or any other given stock, valuation analysis for TSLA can greatly benefit from studying the past earnings and resulting PE calculations.

Metrics Analysis

The industry with the worst average Zacks Rank would place in the bottom 1%. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. Stock prices are delayed, the delay can range from a few minutes to several hours.

tsla pe ratio

And in your continued research we hope you will be sure to check out the further links included for earnings surprises history (beat/miss data) as well as next earnings dates for TSLA. Thanks for visiting, and the next time you need to research TSLA Historical PE Ratio or the ratio for another stock, we hope you’ll think of our site, as your go-to historical PE ratio research resource of choice. However, apples-to-apples comparisons are difficult with these stocks since Tesla is a fast-growing electric vehicle maker with high profit margins, while Ford and GM are slow-growth, low-margin incumbents.

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The firm’s three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers. Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer. The PE ratio (or price-to-earnings ratio) is the one of the most popular valuation measures used by stock market investors. It is calculated by dividing a company’s price per share by its earnings per share. 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.

  • Since 1988 it has more than doubled the S&P 500 with an average gain of +24.41% per year.
  • 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.
  • But it’s a mistake to discount the company’s growth rate, especially since Tesla has a solid track record of beating analyst estimates in recent years, topping them in 10 of the last 11 quarters.
  • Thank you for viewing the detailed overview of Tesla’s PE Ratio provided by GuruFocus.com.
  • The best way to measure both price-to-earnings and growth is with the PEG ratio, a favorite metric of famed hedge fund manager Peter Lynch.
  • A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.

By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use andPrivacy Policy. Quote and option data delayed at least 15 minutes; stock quote data powered by Ticker Technologies, and Mergent. 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.

Will TSLA be a Portfolio Killer in August?

At recent prices, Tesla has a market cap over $750 billion, while larger automakers like FordandGeneral Motorsare valued at just $48 billion and $51 billion. Fair value is what someone is willing to pay, they say, and that is true, but in a time of free money and stimulus the willingness to pay more may also be skewed. Multiples can increase based on fabricated demand even if earnings growth does not warrant the higher valuation levels. To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio.

The P/E of the S&P 500 was below 15 for nearly all of the time Lynch ran his fund. By comparison, since 2000, the P/E of the S&P 500 has almost never been below 15, in part because of the emergence of the fast-growing tech sector. As P/E ratios have inflated, so has the PEG, https://business-accounting.net/ and a PEG of 1 no longer seems like an accurate benchmark. Nothing in HistoricalPERatio.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners.

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The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, tsla pe ratio or for certain other reasons have been excluded from these return calculations. SectorIndustryMarket CapRevenue Auto/Tires/TrucksAuto Manufacturers – Domestic$902.721B$53.823B Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company’s flagship Model 3 is the best-selling EV model in the United States.

This is often referred to as the multiple of a stock, and when groups, markets, or sectors are defined the multiples of all the stocks in those groups can be averaged to define average PE multiples as well. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Our new fair value estimate for Tesla is $255 per share, which reflects the recently enacted three-for-one stock split. Tesla shares began trading on a split-adjusted basis on Aug. 25.