Please click on the following links to see related term pages. 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 https://business-accounting.net/ the valuation based on the company's balance sheet. For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10. There are at least three kinds of PE Ratios used by different investors.

Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future. To buy shares in Tesla you'll need a share-dealing account with an online or offline stock broker. Once you have opened your account and transferred funds into it, you'll be able to search and select shares to buy and sell. You can use Stockopedia’s share research software to help you find the the kinds of shares that suit your investment strategy and objectives. Many investors like to use the price-to-earnings ratio, which offers a good snapshot for how a company's price compares to its current earnings.

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However, the fact remains that a PE ratio reveals how much an investor is willing to pay for the earnings of a company at any given time. The higher the PE multiple the more expensive a company may be, but that is not always true. The PE ratio simply reveals how many times earnings an investor is willing to pay, or that a shareholder is willing to maintain. In the last 12 months, operating cash flow was $14.08 billion and capital expenditures -$7.14 billion, giving a free cash flow of $6.94 billion.

• It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund.
• Many investors like to use the price-to-earnings ratio, which offers a good snapshot for how a company's price compares to its current earnings.
• TSLA currently holds a better value than 40% of stocks based on these metrics.
• The scores are based on the trading styles of Value, Growth, and Momentum.
• You can read more about the power of momentum in assessing share price movements on Stockopedia.

TSLA has a trailing twelve month Price to Earnings ratio of 97.4 which places it above the histroical average of roughly 15. TSLA is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. TSLA's trailing-12-month earnings per share of 7.38 does not justify its share price in the market. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund.

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Data may be intentionally delayed pursuant to supplier requirements. When tsla pe ratio you factor in growth, the auto stock is actually very reasonably priced.

• In the last 12 months, Tesla had revenue of $67.17 billion and earned 9.52 billion in profits.
• This may increase for the current year or quarter dramatically.
• Thanks for visiting, and the next time you need to research TSLA Historical PE Ratio or the ratio for another stock, we hope you'll think of our site, as your go-to historical PE ratio research resource of choice.
• Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
• The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share.

The P/E of the S&P 500 was below 15 for nearly all of the time Lynch ran his fund. By comparison, since 2000, the P/E of the S&P 500 has almost never been below 15, in part because of the emergence of the fast-growing tech sector. As P/E ratios have inflated, so has the PEG, and a PEG of 1 no longer seems like an accurate benchmark. Nothing in HistoricalPERatio.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners.

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Average PE multiples have been popularized in recent years because historical comparisons make current valuations look stretched. 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. Tesla's Earnings per Share for the trailing twelve months ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.77.

• Easily overlooked stocks like Bath & Body Works and Paramount have strong fundamentals and room to run.
• Its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained.
• It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500.
• A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its trailing twelve months earnings.
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This is often referred to as the multiple of a stock, and when groups, markets, or sectors are defined the multiples of all the stocks in those groups can be averaged to define average PE multiples as well. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Our new fair value estimate for Tesla is $255 per share, which reflects the recently enacted three-for-one stock split. Tesla shares began trading on a split-adjusted basis on Aug. 25.

By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use andPrivacy Policy. Quote and option data delayed at least 15 minutes; stock quote data powered by Ticker Technologies, and Mergent. That's why we bring you HistoricalPERatio.com to make it easy for investors to investigate Tesla PE history or the past PE information for any stock in our coverage universe.

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The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. SectorIndustryMarket CapRevenue Auto/Tires/TrucksAuto Manufacturers - Domestic$902.721B$53.823B Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company's flagship Model 3 is the best-selling EV model in the United States.

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.