Tesla TSLA P E Ratio: Current & Historical Analysis

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PE ratio of 40.19 is in the bottom 10% of its industry. What is a good P/E ratio for https://hsmekongbienho.com/what-is-the-net-cash-flow/ TSLA? What is the PE ratio of Tesla (TSLA)? What is the 5 year PE ratio for Tesla? Does Tesla have a good PE ratio?

Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. It is the most commonly used metric for determining a company’s value relative to its earnings. Price to Earnings Ratio or P/E is price / earnings. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.

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• For investors seeking to evaluate Tesla’s (TSLA) current market standing, comprehending its P/E ratio is essential.
• The last earnings date was Wednesday, January 28, 2026, after market close.
• Considering the last 5 years, an average P/E interval is 62.66 , 79.69.
• While a low PE ratio is desirable, a company could trade at lower PE for undesirable reasons.
• This version of the popular P/E ratio uses a variety of underlying fundamental factors such as cost of equity and growth rate.
• The data allows to assess market valuation over various time horizons, helping to identify potential overvaluation or undervaluation trends.
• The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Therefore a higher PE ratio above that may be deemed negative, while a lower PE ratio may be considered better. A good P/E ratio isn’t always a high or low ratio on its own. Create your account and connect with a world of communities. Long term I like the current valuation where it is, if you’re going to hold 5+ years. If you even assume a 50x forward PE on that high end, that’s only $165/share and still trading at a premium. I think EPS for 2025 is reported to be between $2.55 and $3.30/share.

The most recent financial reports and stock price for Tesla indicate that the company’s price-to-earnings ratio (TTM) is 51. The P/E ratio measures the relationship between a company’s stock price and its earnings per share (EPS). A high P/E ratio can result from strong investor interest, company growth, optimistic future projections, or a rising stock price with falling earnings.

A low PE ratio means that a stock is cheap and its price may rise in the future. A high PE ratio means that a stock is expensive and its price may fall in the future. The average price target for Tesla is $396.15, which is -3.78% lower than the current price.

There are several formulas that can be used to estimate the intrinsic value of a stock. The latest short interest is 64.37 million, so 1.72% of the outstanding shares have been sold short. The number of shares has increased by 0.86% in one year. Tesla has 3.75 billion shares outstanding. Tesla has a market cap or net worth of $1.54 trillion.

Since 1988 it has more than doubled the S&P 500 with an average gain of +23.86% per year. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. In this example, we are using the actual earnings (EPS) for the trailing twelve months (or TTM). Cash from Operations (TTM) Cash from Operations (Quarterly)

However, it is crucial to consider that a high P/E ratio also implies higher risk. This suggests that Tesla is valued at a premium compared to some established players but remains in line with other high-growth electric vehicle companies. As of April 15, 2024, Apple (AAPL) has a P/E ratio of 26.7, while NIO (NIO) and Lucid Motors (LCID) have negative P/E ratios. Comparing Tesla’s P/E ratio with its industry peers provides valuable context. As of April 15, 2024, Tesla’s P/E ratio stands at 37.47.

You should consult your legal, tax, or financial advisors before making any financial decisions. The company name is based on the physicist and inventor Nikola Tesla. The company’s goal is to “accelerate the transition to sustainable energy”. Tesla, Inc. is an American company that manufactures and sells electric cars, as well as power storage and photovoltaic systems. How does the Tesla P/E Ratio compare to other related markets or sectors?

• A high PE ratio means that a stock is expensive and its price may fall in the future.
• None of these entities provide legal, tax, or accounting advice.
• The following table provides a comprehensive analysis of the Price-to-Earnings (P/E) ratio over different trailing time periods.
• However, it is crucial to consider that a high P/E ratio also implies higher risk.
• Conversely, a high P/E ratio could mean a company’s stock price is overvalued.
• This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered.

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Total Valuation

This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current https://prime-lux.com/mimecast-announces-new-ceo-david-raissipour-11/ valuation. This version of the popular P/E ratio uses a variety of underlying fundamental factors such as cost of equity and growth rate.

The time intervals range from short-term (1 year) to long-term (20 years when available), offering a broad perspective on market conditions. The data allows to assess market valuation over various time horizons, helping to identify potential overvaluation or undervaluation trends. The following table provides a comprehensive analysis of the Price-to-Earnings (P/E) ratio over different trailing time periods. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation. This allows for a more comprehensive understanding of the index/market valuation. When evaluating the P/E Ratio, it’s important to not only look at its absolute value but also compare it to the average of previous periods.

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Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. None of these entities provide legal, tax, or accounting advice. As a general rule, the price of a T-bills moves inversely to changes in interest rates. T-bills are subject to price change and availability – yield is subject to change.

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. As an investor, you want to buy stocks with the highest probability of https://www.jetwayhk.com/demo/bookkeeping-4/how-to-record-1031-exchange-in-quickbooks-2/ success. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months.

Tesla PE Ratio 2012-2025 TSLA

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. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. The current P/E ratio of 34.86 is 87% lower than the historical average. Tesla’s P/E ratio of 37.47 reflects its status as a high-growth company with significant investor expectations. Investors should carefully evaluate Tesla’s financial performance, market position, and future prospects before making investment decisions. It indicates how much investors are willing to pay for each dollar of a company’s earnings.

Based on page view growth over the last 3 trading days There isn’t pe ratio tesla necesarily an optimum PE ratio, since different industries will have different ranges of PE Ratios. While it might look as if the company’s prospects are being viewed too negatively, it is not a bad rule of thumb to filter out companies with a PE below this level. Very low vs very high PE ratios It is arguable that a PE of five or less is not a remarkable bargain. S&P 500 P/E Ratio is at a current level of 28.77, up from 27.87 last quarter and up from 23.27 one year ago. The mean historical PE ratio of Costco Wholesale over the last ten years is 35.42.

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A high P/E ratio suggests that investors anticipate future growth, while a low P/E ratio implies that the company is undervalued or facing challenges For investors seeking to evaluate Tesla’s (TSLA) current market standing, comprehending its P/E ratio is essential. The S&P 500 PE Ratio is the price to earnings ratio of the constituents of the S&P 500. This is calculated based on the TTM EPS of $4.77 and the stock price of $218.94 per share. Mathematically, the ratio can’t become zero, since the stock price will rarely become a complete zero.

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. The justified price to earnings ratio is the price to earnings ratio that is “justified” by using the Gordon Growth Model. The market average P/E ratio is currently between 20 and 25. Tesla’s P/E ratio of 37.47 indicates that investors are optimistic about the company’s future growth potential. Tesla’s P/E ratio has experienced significant fluctuations over the past years, mirroring the company’s rapid growth and evolving market perception. Compared to the broader market, Tesla’s P/E ratio is considered relatively high, reflecting its status as a growth stock with significant future potential.