As such, I will only write about one article on here every 30 days, which is the minimum required to maintain SA Premium access. I would rather slit my wrists than charge you for my content, so you won’t see a marketplace service from me. TSLA has a trailing twelve month Price to what is tesla p/e ratio Earnings ratio of 42.6. The historical average of roughly 15 shows a poor value for TSLA stock as investors are paying higher share prices relative to the company’s earnings. TSLA’s high trailing PE ratio shows that the firm has been trading above its fair market value recently.
Stock prices are delayed, the delay can range from a few minutes to several hours.
These Stocks Are Leading the Growth Rebound
P/E ratios can be used for valuations and identifying the best stocks to buy. In fact, it’s one of the most widely used ratios when analyzing a stock’s value. Still, if the forward P/E is lower than the trailing P/E then the market expects earnings to increase in the future. If the forward P/E is higher, earnings are expected to fall. The downside to using future expected earnings is that earnings expectations might be downplayed by the company. The company may make estimates that are on the low-end to be able to beat earnings expectations.
- Historical valuations generally do not reflect a company’s current market value.
- The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock.
- Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
- The company name is based on the physicist and inventor Nikola Tesla.
- 60 minutes featuring the brightest minds on Wall Street, taking you through the most important hour of the trading day.
- This may increase for the current year or quarter dramatically.
A better ratio to identify the time to buy a cyclical businesses is the PS Ratio . Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
The Company’s automotive segment includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits. Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle… Or is there an opportunity to expand the business’ product line in the future?
It’s best used as a relative metric i.e. when comparing P/E ratios between similar companies operating within the same industry. The price-to-book (P/B) ratio evaluates a firm’s market value relative to its book value. Conversely, toward the end of an economic recession, interest rates will typically be low, and banks tend to earn less revenue.