Inquiry Into Tesla’s Competitor Dynamics In Automobiles Industry Tesla NASDAQ:TSLA

While Musk has often been faulted for being too optimistic, I’d rather have a leader who is overly optimistic and breaks the barriers of possibilities as a result. This helps Google Cloud customers accelerate the development of AI applications for their own purposes. Vertex AI saw an impressive sixfold increase in activity in the second half of 2023 compared to the six months prior.

  1. Vertex AI saw an impressive sixfold increase in activity in the second half of 2023 compared to the six months prior.
  2. 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.
  3. Access 4000+ stock metrics covering valuations, financials, risk, returns and more.
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. 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. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

Tesla PE Ratio (Forward)

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 Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. The latest short interest is 80.47 million, so 2.53% of the outstanding shares have been sold short.

Tesla PE ratio by year

It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. 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. Investors have an opportunity to buy Alphabet stock as its core businesses rebound, all while paying a discount relative to its peers in the tech sector and the broader market. Organizations spent most of 2022 and the early part of 2023 carefully managing their costs as they braced for weaker sales due to high inflation and rising interest rates crimping household budgets.

That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Gross margin is 18.25%, with operating and profit margins of 9.19% and 15.50%.

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company’s market price to its Earnings per Share (Diluted). Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company’s financial health and risk profile, aiding in informed decision-making. Because the PE Ratio measures how long it takes tesla pe ratio to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks. To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued.

PE ratio, current and historical analysis

Darling technology stocks are making new highs and are busy overtaking each other in the four-comma club, while Tesla has fallen to the 11th spot in terms of market capitalization. Not many may recall this, but Tesla breached the $1 trillion level in 2021 and has since lost 40% of its value. Competition is heating up, and while total deliveries and revenue are still going up, they come at the expense of margin.

I’m not suggesting it will soar that high, but the company’s accelerating growth and record financial results warrant a valuation more in line with the Nasdaq-100, at the very least. The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years. The Price to Earnings Ratio (PE Ratio) is calculated by taking the stock price / EPS Diluted (TTM).

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P/E ratio for Tesla (TSLA)

In the last 12 months, operating cash flow was $13.26 billion and capital expenditures -$8.90 billion, giving a free cash flow of $4.36 billion. Alphabet’s revenue for 2023 came in at $307.4 billion, with $73.8 billion dropping to the bottom line as net income (profit). That translated into $5.80 in earnings per share, an increase of 27.2% compared to 2022. View advanced valuation and financial ratios for in-depth
analysis of company financial performance. In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months.

The debt-to-equity (D/E) ratio is a key indicator of a company’s financial health and its reliance on debt financing. Access 4000+ stock metrics covering valuations, financials, risk, returns and more. Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company’s balance sheet. The company has $29.09 billion in cash and $5.23 billion in debt, giving a net cash position of $23.86 billion or $7.49 per share. In the last 12 months, Tesla had revenue of $96.77 billion and earned $15.00 billion in profits.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.18% per year. These returns cover a period from January 1, 1988 through January 1, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.

Return on equity (ROE) is 27.90% and return on invested capital (ROIC) is 19.66%. The last earnings date was Wednesday, January 24, 2024, after market close.

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