Is Tesla's (TSLA) PE ratio higher than its industry group?
Depending on the particular phase of a business cycle, some industries will perform better than others. Compared to the aggregate P/E ratio of 14.88 in the Auto Manufacturers industry, Tesla Inc. has a higher P/E ratio of 663.96. Shareholders might be inclined to think that Tesla Inc. might perform better than its industry group.
Is Tesla Inc (TSLA) stock overvalued?
Compared to the aggregate P/E ratio of 14.88 in the Auto Manufacturers industry, Tesla Inc. has a higher P/E ratio of 663.96. Shareholders might be inclined to think that Tesla Inc. might perform better than its industry group. It’s also possible that the stock is overvalued.
What is the optimum PE ratio for a stock?
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.
Are P/E ratios reliable for benchmarking companies?
Since Earnings Per Share (EPS), defined as Net Income / Shares Outstanding, uses Net Income in the calculation, P/E multiples are not always reliable for benchmarking companies with negative earnings or debt. One reason why P/E ratios can be unreliable is that the ratio assumes a company’s equity has value.
Does Tesla have a good PE ratio?
Tesla Has the Highest PE Ratio Among the World's Ten Largest Companies. Using a stock's price-to-earnings (P/E) ratio is one of the quickest ways to learn whether a company is overvalued or undervalued. If a company's stock is undervalued, it may be a good investment based on the current price.
What was Tesla's highest PE ratio?
Therefore, Tesla's PE Ratio for today is 96.49. During the past 13 years, the highest PE Ratio of Tesla was 1396.86. The lowest was 88.23.
What is a good PE ratio for stocks?
So, what is a good PE ratio for a stock? A “good” P/E ratio isn't necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
What was Tesla's price/earnings ratio 2020?
1,274.1xTesla's p/e ratio decreased in 2019 (-90.3x, +183.0%) and 2021 (306.7x, -75.9%) and increased in 2017 (-37.2x, -5.6%), 2018 (-31.9x, -14.2%) and 2020 (1,274.1x, -1,510.9%).
Is Tesla PE overvalued?
We Looked at the Math. Tesla's market capitalization recently moved well past $1 trillion, but the independent investment-research firm New Constructs believes the company is overvalued by roughly $1 trillion of that.
Is Tesla overvalued?
At current prices, we view Tesla shares as overvalued with the stock trading in 2-star territory and more than 50% above our fair value estimate. Our forecast implies Tesla will become a top-10 automaker globally in annual vehicle deliveries, averaging annual deliveries growth of nearly 20% over the next decade.
What is the PE ratio of Apple?
25.01Apple PE ratio as of July 22, 2022 is 25.01.
Is 30 a good PE ratio?
P/E 30 Ratio Explained A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.
What PE ratio is too high?
A PEG greater than 1 might be considered overvalued because it might indicate the stock price is too high compared to the company's expected earnings growth.
Which stock has highest PE ratio now?
High PE stocksS.No.NameP/E1.Rachana Infra.99.162.Mahindra Logis.98.873.Pidilite Inds.98.754.Goodricke Group98.6322 more rows
Which stock has highest PE ratio now?
High PE stocksS.No.NameP/E1.Rachana Infra.99.162.Mahindra Logis.98.873.Pidilite Inds.98.754.Goodricke Group98.6322 more rows
What is Tesla's forward PE?
Tesla's Forward PE Ratio for today is 64.04. Tesla's PE Ratio without NRI for today is 100.75.
What is Apple's current PE ratio?
25.01As of today (2022-07-24), Apple's share price is $154.09. Apple's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $6.16. Therefore, Apple's PE Ratio for today is 25.01.
Is high PE ratio good?
In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends.
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Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in tw... + VIEW MORE
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Daily Open (Trading Days Only) - The trading day's adjusted opening stock price. Only returns data for trading days.
Sector Benchmark Analysis
Indicates the multiple of earnings that stock investors are willing to pay for one share of the firm.
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The chart above depicts the distribution of p/e ratio for companies operating in the Consumer Discretionary sector in the United States. Over 860 companies were considered in this analysis, and 486 had meaningful values. The average p/e ratio of the companies is 7.4x with a standard deviation of 19.0x.
Analysis
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in tw...
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The following section summarizes insights on Tesla, Inc.'s P/E Ratio (Fwd):
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Ben Graham Number - A calculation inspired by Benjamin Graham often who is called the "father of value investing." The Graham Number estimates a stock's fundamental value by taking into account the company's earnings per share and book value per share.
Sector Benchmark Analysis
Indicates the multiple of forward earnings that stock investors are willing to pay for one share of the firm.
