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. tesla price earning ratio A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.
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- Investors might be willing to pay a premium for those shares based on the company’s strength and growth potential.
- In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months.
For information on how to trade Tesla Stock refer to our How to Trade Tesla Stock guide. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance. Tesla stock is reversing deeper and deeper into the mud slide as investors contemplate back-to-back recalls and a distracted CEO. The EV company’s shares rallied despite warnings from regulators. Cheaper EV model, robotaxis, and a new Master Plan are expected by analysts at today’s event.
Tesla (NAS:TSLA) PE Ratio
Take your analysis to the next level with our full suite of features, known and used by millions throughout the trading world. Tesla’s earnings beat has shown that despite rising electricity prices and lowered demand – EVs are still in. Provide specific products and services to you, such as portfolio management or data aggregation. Return on equity is 32.40% and return on invested capital is 39.90%.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. And now accounts for about 35% of the market cap of all auto makers in the world. The company has $22.19 billion in cash and $3.10 billion in debt, giving a net cash position of $19.09 billion or $6.03 per share.
Some other things to look out for include dividend rate, price to book ratio, earnings charts as well as sales figures. The price-to-earnings ratio is calculated using earnings per share of the last four quarters, a metric normally referred to as trailing earnings per share. The most commonly displayed P/E ratio is a trailing P/E ratio that means it is based on the most recent four quarters of earnings. The definition of the price-to-earnings ratio, usually called a P/E ratio, is the ratio between the price of the company’s stock and the company’s earnings per share.
Industrial companies have assets tied to inventory and property, such as production plants or equipment. Property and loans on the other hand account for a huge chunk of assets owned by financial institutions. Price to book ratio underscores the value that market participants attach to a company’s equity. Companies command different P/Bs because some companies and industries are more efficient at producing income from their assets than others. First, a stock with a lower P/E ratio relative to the industry average will often be a better value when compared to a stock with a higher P/E. This is because a low P/E ratio allows investors to pay less for every dollar on earnings.
The ‘explosive’ AI trend is here to stay. These stocks are poised to benefit.
However, this also fails to take into account the specifics of an individual company. Within a specific sector, one company may trade at an above-average P/E ratio and be worth the price. Another may have an average or below average P/E ratio and still be overvalued.
- The coronavirus pandemic brought the economy to a near halt in 2020, when the unemployment rate shot up…
- Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value.
- Adding a company’s expected growth into the ratio helps to adjust the result for companies that may have a high growth rate and a high P/E ratio.
- Once the P/E is calculated, find the expected growth rate for the stock in question, using analyst estimates available on financial websites that follow the stock.
In general, a lower number or multiple is usually considered better than a higher one. While a low P/E ratio may make a stock look like a good buy, factoring in the company’s growth rate to get the stock’s PEG ratio may tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its future earnings expectations. Adding a company’s expected growth into the ratio helps to adjust the result for companies that may have a high growth rate and a high P/E ratio. It is also important to note that a company with a high P/E ratio will always be under pressure to live up to market expectations.