Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Dividend Discount Model (DDM) 

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In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that go directly to the investor.

Intrinsic Stock Value (Valuation Summary)

Tesla Inc., dividends per share (DPS) forecast


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Year Value DPSt or Terminal value (TVt) Calculation Present value at 21.11%
0 DPS01 0.00
1 DPS1 = 0.00 × (1 + 0.00%)
2 DPS2 = × (1 + 0.00%)
3 DPS3 = × (1 + 0.00%)
4 DPS4 = × (1 + 0.00%)
5 DPS5 = × (1 + 0.00%)
5 Terminal value (TV5) = × (1 + 0.00%) ÷ (21.11%0.00%)
Intrinsic value of Tesla Inc. common stock (per share) $—
Current share price $871.27

Based on: 10-K (reporting date: 2021-12-31).

1 DPS0 = Sum of the last year dividends per share of Tesla Inc. common stock. See details »

Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Required Rate of Return (r)

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Rate of return on LT Treasury Composite1 RF 3.16%
Expected rate of return on market portfolio2 E(RM) 12.24%
Systematic risk of Tesla Inc. common stock βTSLA 1.98
Required rate of return on Tesla Inc. common stock3 rTSLA 21.11%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 rTSLA = RF + βTSLA [E(RM) – RF]
= 3.16% + 1.98 [12.24%3.16%]
= 21.11%

Dividend Growth Rate (g)

Company does not pay dividends.