Is Tesla Inc (TSLA) Stock Trading Below Fair Value?
Tesla Inc (TSLA) receives a low valuation ranking of 9 from Investors Observer data analysis. The proprietary ranking system focuses on the underlying health of a business by analyzing its stock price, earnings, and rate of growth. TSLA is worth better than 9% of stocks based on these valuation analyzes. Investors primarily focused on buy and hold strategies will find the valuation ranking to match their goals when making investment decisions.
TSLA’s 12-month price-to-earnings (PE) ratio of 350.8 puts it above the all-time average of around 15. TSLA is poor value at its current trading price as investors pay more than it. that it is worth in relation to the company’s profits. . TSLA’s last 12-month earnings per share (EPS) of 1.92 does not justify what it is currently trading in the market. However, follower PE ratios do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even though current earnings are weak. TSLA currently has a 12 month forward PEG ratio of 6.03. The market is currently overvaluing TSLA relative to its projected growth due to the PEG ratio above fair market value of 1. TSLA’s PEG arises from the fact that its forward price / earnings ratio is divided by its growth rate. Because PEG ratios include more of a company’s overall health fundamentals with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation metrics paint a pretty poor picture for TSLA at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for TSLA are below the market average, resulting in a valuation score of 9. Click here for the full report on Tesla Inc (TSLA) Stock.