Auto Manufacturers
Updated on August 19, 2024, by Mark Pukhov
Tesla, Inc. designs, manufactures, sells, and leases electric vehicles and energy systems, as well as offering related services.
Its stock has performed remarkably well over the years, making it the most analyzed stock on YouTube, according to Google Trends data for the past 12 months.
5Y:
1,403.34%
16,962.10%
ALL:
The price of stock was driven not by the company's sales as you'd expect, but by the idea that Tesla will dominate the electric vehicle market in the future.
The market seems to be okay with it because Tesla's PE ratio is 4 times higher than the industry average for auto manufacturers, which is 15.57.
tesla, inc.
60.70
The company's PEG ratio is 10 times higher than the industry average of 2.13 and far exceeds the typical value investor threshold of 1.0.
tesla, inc.
20.23
Tesla's price to free cash flow ratio is more than 4 times higher than the industry average of 109.34, far exceeding the typical value investor's threshold of 10.
tesla, inc.
402.11
As you've noticed, the KPIs we check aim to determine if the stock is overvalued or undervalued, as the goal of any stock analysis is to assess if it's a good deal.
The company's price-to-sales ratio is more than 6 times higher than the industry average of 1.11, far exceeding the typical value investor's preference of 1-2 or lower.
tesla, inc.
7.24
Tesla's price-to-book ratio exceeds both the typical value investor threshold of 3.0 and the industry average of 2.13.
tesla, inc.
10.39
The last KPI that we'll look into is Tesla's intrinsic value. The most important thing is that the market price should be lower than the company's intrinsic value.
Tesla's current price of $216.12 is 72% higher than its base-case intrinsic value and exceeds its best-case intrinsic value by 40%.
$60.5
$130.53
Combining KPIs and intrinsic value results, it's clear the company is heavily overvalued, making this stock a poor deal.
The risks of investing in Tesla stock include:
1. possibility of slow growth
2. low sales
3. increasing COGS and competition
4. production delays
5. supply chain disruptions
6. changing regulations, etc.
The announced unveiling of Robotaxi on August 8, 2024, was delayed to October 10. The idea itself is great, but let's see what analysts say about it and Tesla stock in general.
“I wouldn't consider buying Tesla stock ... based on that idea alone. While it's exciting, there are still lots of unknowns ....”
#1
“Tesla stock has received a consensus rating of buy. The average rating score is and is based on 50 buy ratings, 27 hold ratings, and 15 sell ratings.”
#2
In conclusion, I would like to say that it's up to you to decide whether to invest in Tesla, Inc. or not, but the stock overall does not look good.