price to earning ratio tesla

Usually the price per share will be greater than the earnings per share, thus the P/E ratio is often called the ‘multiple’. Comparing a company to other similarly sized companies in the same type of business is the best way to judge what a “good” price-to-earnings ratio is. If a stock has a lower P/E ratio than its peers, whether it’s 5, 30 or 50 or more, that’s generally a good sign. Analysts calculate a forward P/E ratio by dividing the stock’s share price by estimated future earnings.

What was Tesla’s PE ratio last 5 years?

Analysis. Tesla's p/e ratio for fiscal years ending December 2018 to 2022 averaged 302.2x. Tesla's operated at median p/e ratio of 52.3x from fiscal years ending December 2018 to 2022. Looking back at the last 5 years, Tesla's p/e ratio peaked in December 2020 at 1,274.1x.

Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Get advice on achieving your financial goals and stay up to date on the day’s top financial stories. Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date.

Valuation Ratios

For example, below is a comparison of the relative valuation of a biotech stock and an integrated oil company. For example, a company with a current P/E ratio of 25, above the S&P average, trades at 25 times earnings. The high multiple indicates that investors expect higher growth from the company compared to the overall market.

It’s an app that people can use just like a regular wallet to store their card details and information. Tesla stock has a sky-high valuation, much to the delight of bulls and the disgust of bears. Take your analysis to the next level with our full suite of features, known and used by millions throughout the trading world.

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For example, if earnings are expected to rise, investors might expect the company to increase its dividends as a result. Higher earnings and rising dividends typically lead to a higher stock price. Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.

price to earning ratio tesla

The P/E ratio expresses the share price in relation to the company’s earnings per share . Usually, the price will be greater than the EPS, thus the P/E ratio tells the investor how much they are having to pay to ‘buy’ that company’s earnings. For example, a company’s shares are trading at £5 and its EPS is £1, thus the P/E ratio is five. The higher the P/E ratio, the more confidence the market has in the company’s prospects – in effect, investors are betting on the appearance of a higher EPS in the future.

Tesla`s Q1 deliveries slightly better than consensus, says Deutsche Bank

The company’s goal is to “accelerate the transition to sustainable energy”. The company name is based on the physicist and inventor Nikola Tesla. Real-time analyst price to earning ratio tesla ratings, insider transactions, earnings data, and more. With that in mind, investors can use some broad principles to analyze a company’s P/E ratio.

price to earning ratio tesla

In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies. The price/earnings-to-growth ratio is a company’s stock price to earnings ratio divided by the growth rate of its earnings for a specified time period. Earnings per share is the amount of a company’s profit allocated to each outstanding share of a company’s common stock, serving as an indicator of the company’s financial health.

These Stocks Are Leading the Growth Rebound

In other words, earnings per share is the portion of a company’s net income that would be earned per share if all the profits were paid out to its shareholders. EPS is used typically by analysts and traders to establish the financial strength of a company. The P/E ratio is calculated by dividing the stock’s current price by its latest earnings per share.

You can determine whether it’s good by looking at the company’s P/E ratios over time, and comparing the current ratio to the ratios of similar companies. It’s also a good idea to research the company’s financial performance to get a sense of whether it’s likely to grow. It could be good if similar companies have higher ratios and investors believe the share price is likely to increase. Although the basic idea behind P/E ratios can be simple to understand, using them to make investment decisions can be tricky. Here are the answers to some of the most frequently asked questions regarding P/E ratios.Is a high P/E ratio good?

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