Tesla, Inc TSLA Financial Ratios and Metrics

In general, a lower number or multiple is usually considered better than a higher one. In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Tesla TSLA in comparison to its major competitors within the Automobiles industry. The other six stocks trade at an average P/E ratio of 53.2, implying Alphabet stock would have to climb 116% just to catch up.

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. 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. 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. Companies with a positive P/E ratio bellow 10 are generally seen as “value stocks” meaning that the company is already very profitable and unlikely to strong growth in the future.

  1. The latest short interest is 80.47 million, so 2.53% of the outstanding shares have been sold short.
  2. The last earnings date was Wednesday, January 24, 2024, after market close.
  3. As a shareholder, you want the company to earn back the price you pay as soon as possible.
  4. 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.

Also for stocks with the same PE Ratio, the one with faster growth business is more attractive. The Forward Price to Earnings (PE) Ratio is similar to the price to earnings ratio. The regular P/E ratio is a current stock price https://business-accounting.net/ over its earnings per share. The forward P/E ratio is a current stock’s price over its “predicted” earnings per share. If the forward P/E ratio is higher than the current P/E ratio, it indicates decreased expected earnings.

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For the valuation analysis of Tesla in the Automobiles industry, the PE, PB, and PS ratios indicate that Tesla’s valuation is relatively high compared to its peers. This suggests that investors are willing to pay a premium for Tesla’s earnings, book value, and sales. On the other hand, Tesla’s high ROE indicates that the company is generating strong returns on shareholder equity. However, the low EBITDA, gross profit, and revenue growth suggest that Tesla’s profitability and revenue growth are relatively low compared to its industry peers. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

Microsoft’s ChatGPT-powered Bing was first to market with a generative AI search engine, which threatened Google’s dominance and left Alphabet playing catch-up. If Google becomes faster, more convenient, and more accurate, it’s likely to keep its user base and advertisers happy. YouTube’s quarterly ad revenue also jumped 15.5% to a record $9.2 billion. For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged.

What is the 3-year average PE ratio for Tesla (TSLA)?

Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10. All PE ratio stats are based on quarterly TTM periods, unless otherwise specified. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

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. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive.

There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

The company has a current ratio of 1.73, with a Debt / Equity ratio of 0.08. However, reading the latest earnings transcript, I am heartened to see statements like the ones below from Musk, where he is acknowledging his optimism with a dose of realism as well. Do I also see a sense of humbleness in his statement about Chinese competitors? Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. GSE will help Google maintain its 91.4% global market share in internet search.

About TSLA Stock

In the fourth quarter of 2023 (ended Dec. 31), Google Search delivered a record-high $48 billion in revenue, which equaled a 12.7% year-over-year increase. It was the fastest pace of growth since mid-2022, right before interest rates shot higher. The current PE ratio of TSLA is 86% lower than the 4-year historical average. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. As an investor, you want to buy stocks with the highest probability of success.

How is TSLA’s PE ratio calculated (Tesla PE ratio formula)?

The Price/Earnings ratio measures the relationship between a company’s stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation. It is the most commonly used metric for determining a company’s value relative to its earnings. In this example, we are using the actual earnings (EPS) for the trailing twelve months (or TTM). A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its trailing twelve months earnings.

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. It’s packed with all of the company’s key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, tesla pe ratio Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers. The beta is 2.43, so Tesla’s price volatility has been higher than the market average. Being a contrarian at heart, I like the fact that Tesla’s stock has lost 25% YTD while the S&P 500 (SP500) is up nearly 4%.

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. As a current shareholder of Meta Platforms, Inc. (META) and a (sad) former shareholder of Nvidia Corporation (NVDA), I recall fondly the days that the market hated these names. The companies survived and their stocks came roaring back, at least quintupling in the process. But, American capitalism has thrived for centuries, rewarding the risk-takers with deeper pockets.

I am upgrading the stock to a “Buy,” backed by the fact that just 3/13 ratings got worse and due to my contrarian instinct. Artificial intelligence (AI) is playing an increasingly important role in Google Search, in particular. Alphabet launched two powerful generative AI models called Bard and Gemini in 2023, the latter of which outperforms OpenAI’s flagship GPT-4 models in most multimodal benchmarks. In other words, Alphabet can make the case that Gemini is better at understanding, interpreting, and generating text, images, videos, and computer code.

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