In the dynamic world of financial analysis, the price-to-earnings ratio (P/E ratio) serves as a crucial indicator of a company’s valuation. For investors seeking to evaluate Tesla’s (TSLA) current market standing, comprehending its P/E ratio is essential. This comprehensive guide delves into the intricacies of Tesla’s P/E ratio, providing insights into its historical trends, comparisons with industry peers, and implications for investment decisions.
What is a P/E Ratio?
The P/E ratio measures the relationship between a company’s stock price and its earnings per share (EPS). It indicates how much investors are willing to pay for each dollar of a company’s earnings. A high P/E ratio suggests that investors anticipate future growth, while a low P/E ratio implies that the company is undervalued or facing challenges
Tesla’s Current P/E Ratio:
As of April 15, 2024, Tesla’s P/E ratio stands at 37.47. This indicates that investors are willing to pay $37.47 for every dollar of Tesla’s earnings. Compared to the broader market, Tesla’s P/E ratio is considered relatively high, reflecting its status as a growth stock with significant future potential.
Historical Trends of Tesla’s P/E Ratio:
Tesla’s P/E ratio has experienced significant fluctuations over the past years, mirroring the company’s rapid growth and evolving market perception. In 2021, Tesla’s P/E ratio reached a staggering high of 1401.73, reflecting investor enthusiasm during its exponential growth phase. However, the ratio has since declined, stabilizing around the current level of 37.47.
Comparison with Industry Peers:
Comparing Tesla’s P/E ratio with its industry peers provides valuable context. As of April 15, 2024, Apple (AAPL) has a P/E ratio of 26.7, while NIO (NIO) and Lucid Motors (LCID) have negative P/E ratios. This suggests that Tesla is valued at a premium compared to some established players but remains in line with other high-growth electric vehicle companies.
Implications for Investment Decisions:
Tesla’s P/E ratio of 37.47 indicates that investors are optimistic about the company’s future growth potential. However, it is crucial to consider that a high P/E ratio also implies higher risk. Investors should carefully evaluate Tesla’s financial performance, market position, and future prospects before making investment decisions.
Tesla’s P/E ratio of 37.47 reflects its status as a high-growth company with significant investor expectations. Understanding the historical trends, industry comparisons, and implications for investment decisions empowers investors to make informed choices regarding Tesla’s stock.
P/E ratio history for Tesla from 2010 to 2023
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 30.6 | -83.95% |
| 2021 | 190 | -80.3% |
| 2020 | 967 | -1262.32% |
| 2019 | -83.2 | 44.44% |
| 2018 | -57.6 | 118.03% |
| 2017 | -26.4 | -40.06% |
| 2016 | -44.1 | 26.48% |
| 2015 | -34.8 | -63.04% |
| 2014 | -94.2 | -61.79% |
| 2013 | -247 | 2594.01% |
| 2012 | -9.15 | -19.23% |
| 2011 | -11.3 | 167.19% |
| 2010 | -4.24 |
P/E ratio as of April 2024 (TTM): 59
The most recent financial reports and stock price for Tesla indicate that the company’s price-to-earnings ratio (TTM) is 51. 871. By the end of 2022, the company’s P/E ratio stood at thirty. 6.
Why is Tesla Stock (TSLA) P/E Ratio So High? [Spoiler Alert – ITS NOT]
FAQ
Does Tesla have a good PE ratio?
What is good PE ratio?
Is Tesla undervalued right now?
What is the 5 year PE ratio for Tesla?
What is Tesla’s P/E ratio?
The PE ratio marks a decrease of 44% from its last 4 quarters average of 62.1. The average historical PE ratio of Tesla for the last four years is 268.36. The current P/E ratio of 34.86 is 87% lower than the historical average.
What is the PE ratio of Tesla (TSLA)?
The average historical PE ratio of Tesla for the last four years is 268.36. The current P/E ratio of 34.86 is 87% lower than the historical average. Looking back at the last four years, TSLA’s PE ratio peaked in the Dec 2020 quarter at 940.89, when the price was $235.22 and the EPS was $0.25.
What is a good P/E ratio for TSLA?
A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its trailing twelve months earnings. In general, a lower number or multiple is usually considered better than a higher one. Will TSLA be a Portfolio Killer in March?
What is TSLA’s PE ratio?
PE ratio of 40.19 is in the bottom 10% of its industry. Forward pe ratio of 52.63 is in the bottom 10% of its industry. How is TSLA’s pe ratio calculated?