Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Tesla Inc. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2010
- Current Ratio since 2010
- Price to Earnings (P/E) since 2010
- Analysis of Revenues
- Aggregate Accruals
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Current Valuation Ratios
Tesla Inc., current price multiples
| Tesla Inc. | Ford Motor Co. | General Motors Co. | Automobiles & Components | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | ||||||||
| No. shares of common stock outstanding | ||||||||
| Growth rate (g) | ||||||||
| Earnings per share (EPS) | ||||||||
| Next year expected EPS | ||||||||
| Operating profit per share | ||||||||
| Sales per share | ||||||||
| Book value per share (BVPS) | ||||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | ||||||||
| Price to next year expected earnings | ||||||||
| Price-earnings-growth (PEG) | ||||||||
| Price to operating profit (P/OP) | ||||||||
| Price to sales (P/S) | ||||||||
| Price to book value (P/BV) | ||||||||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Tesla Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial ratios of the company over the observed five-year period reveal significant changes that offer insights into market perception and valuation dynamics.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a strong decreasing trend from an exceptionally high value of 1149.47 at the end of 2020 to a more moderate 40.55 by the end of 2023. However, there is a noticeable increase in 2024, reaching 181.57, indicating renewed investor optimism or changes in earnings that affected valuation. Overall, the decline from 2020 to 2023 suggests improved earnings relative to price or market recalibration of earnings expectations.
- Price to Operating Profit (P/OP) Ratio
- Similar to the P/E ratio, the P/OP ratio dropped significantly from 415.63 in 2020 to 40.14 in 2022, reflecting a substantial improvement in operating profitability or adjustments in price levels. The ratio then rose again in the last two years, reaching 181.95 by 2024, signifying a higher price relative to operating profit, which could point to market optimism or decline in operating profitability in that period.
- Price to Sales (P/S) Ratio
- The P/S ratio witnessed a steady downward trend from 26.28 in 2020 to 6.28 in 2023, indicating that the company's stock price became less expensive relative to its sales over time. However, the ratio increased to 13.18 in 2024, suggesting a valuation premium relative to sales re-emerging in the latest year.
- Price to Book Value (P/BV) Ratio
- This ratio also demonstrates a decreasing trend, moving from 37.29 in 2020 to 9.71 in 2023, indicating the market valued the company at a smaller multiple of its book value over this period. The increase to 17.66 in 2024 suggests a shift where the market started assigning a higher premium to the book value again, potentially reflecting improved growth prospects or asset quality concerns.
In summary, all four valuation ratios showed a general decline from 2020 through 2023, likely reflecting growing earnings, operating profit, sales, and book value bases or a market adjustment from earlier overvaluation. The uptick in all ratios during 2024 signals a changed market outlook, possibly due to renewed growth expectations or volatility in earnings and profit metrics. This pattern indicates a transition phase in the company's valuation dynamics, marked by an initial correction followed by increased investor confidence or speculative pressure in the most recent year.
Price to Earnings (P/E)
Tesla Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to common stockholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| P/E Ratio, Sector | ||||||
| Automobiles & Components | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income attributable to common stockholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Tesla Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share price
- The share price exhibited an initial increase from $287.81 at the end of 2020 to $302.45 by the end of 2021. This was followed by a noticeable decline to $173.22 in 2022. In 2023, there was a modest recovery with the price rising to $190.93. A significant surge occurred by the end of 2024, with the share price more than doubling to reach $400.28.
- Earnings per share (EPS)
- EPS showed strong growth from $0.25 in 2020 to $1.78 in 2021. The upward trend continued in 2022 and 2023, reaching peaks of $3.97 and $4.71 respectively. However, by the end of 2024, EPS declined to $2.20, indicating a reduction in profitability compared to the previous two years.
- Price-to-Earnings ratio (P/E)
- The P/E ratio started extremely high at 1149.47 in 2020, signaling market expectations highly disproportionate to earnings at that time. A substantial decrease occurred in 2021 and 2022, falling to 169.91 and 43.65 respectively, reflecting improved earnings relative to price. The ratio remained relatively stable in 2023 at 40.55 before rising sharply to 181.57 in 2024. This increase suggests that despite lower earnings in 2024, the market valuation of the shares increased significantly.
Price to Operating Profit (P/OP)
Tesla Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Automobiles & Components | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Tesla Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share price trend
- The share price exhibited fluctuations over the observed period. Initially, it increased modestly from 287.81 US$ at the end of 2020 to 302.45 US$ at the end of 2021. Thereafter, there was a notable decline to 173.22 US$ by the end of 2022, followed by a slight recovery to 190.93 US$ in 2023. The share price then experienced a significant surge, reaching 400.28 US$ at the end of 2024, representing the highest point in the timeline.
- Operating profit per share trend
- The operating profit per share showed a generally positive trajectory from 2020 through 2022, increasing from 0.69 US$ in 2020 to a peak of 4.32 US$ in 2022. However, this was followed by a decline in subsequent years, falling to 2.79 US$ in 2023 and further to 2.20 US$ in 2024.
- Price to Operating Profit (P/OP) ratio trend
- The P/OP ratio decreased significantly from a very high level of 415.63 in 2020 to 143.76 in 2021, and further to 40.14 in 2022, reflecting improving operating profitability relative to the share price during that period. However, in 2023, the ratio increased to 68.39 and then spiked to 181.95 in 2024, which may indicate that the market price increased disproportionately compared to operating profits, or that operating profits declined relative to share price.
- Overall analysis
- The data reveals volatility in both share price and operating profit per share. While operating profit per share reached its highest level in 2022 before declining, the share price showed a strong rebound in 2024 despite reduced operating profit per share. This disconnect contributed to a substantial increase in the P/OP ratio in the latter years, suggesting that market valuation outpaced operational earnings during that period. The trends imply a shifting investor sentiment or external market factors influencing valuation independently of operational profitability.
Price to Sales (P/S)
Tesla Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| P/S Ratio, Sector | ||||||
| Automobiles & Components | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Tesla Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The data reveals several notable trends in the company's financial performance and market valuation from 2020 to 2024.
- Share Price
- The share price experienced fluctuations over the five-year period. It initially increased moderately from $287.81 in 2020 to $302.45 in 2021. However, a significant decline occurred in 2022, dropping to $173.22. This was followed by a slight recovery to $190.93 in 2023. In 2024, the share price rose sharply to $400.28, representing the highest value in the observed period.
- Sales Per Share
- Sales per share showed consistent growth over the entire period from 2020 to 2023, increasing from $10.95 to $30.39. This growth plateaued in 2024, with sales per share remaining almost stable at $30.37 compared to the previous year.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrated a downward trend from 26.28 in 2020 to 6.28 in 2023, indicating a decreasing valuation multiple relative to sales per share. Nevertheless, in 2024, there was a marked increase in the P/S ratio to 13.18. This suggests a renewed investor optimism or a change in market perception relative to the sales generated per share.
Overall, the data suggests that while sales per share steadily increased until stabilizing, the market valuation as reflected in share price and P/S ratio was more volatile. The sharp rise in share price and P/S ratio in 2024 could be indicative of altered market expectations or strategic developments influencing investor confidence.
Price to Book Value (P/BV)
Tesla Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Automobiles & Components | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Tesla Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated fluctuations over the observed period. It increased slightly from 287.81 US$ in 2020 to 302.45 US$ in 2021, followed by a significant decline to 173.22 US$ in 2022. The share price then experienced a moderate recovery in 2023, reaching 190.93 US$, and displayed a strong upward surge to 400.28 US$ by the end of 2024.
- Book Value per Share (BVPS)
- Book value per share showed a consistent upward trend throughout the period. It increased from 7.72 US$ in 2020 to 9.74 US$ in 2021, continuing its rise to 14.13 US$ in 2022. This growth sustained in subsequent years with BVPS reaching 19.67 US$ in 2023 and further increasing to 22.67 US$ at the end of 2024, indicating a steady accumulation of net assets relative to the number of shares outstanding.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio declined markedly from 37.29 in 2020 to 31.06 in 2021, indicating that the share price growth did not keep pace with the increase in book value per share. This downward trend intensified in 2022 and 2023, with ratios falling to 12.26 and 9.71 respectively, suggesting growing market caution or a revaluation of the stock relative to its book value. However, the ratio reversed its decline in 2024, rising to 17.66, reflecting a relative increase in market valuation compared to the company’s book value.
- Overall Insights
- Throughout the analyzed years, the company’s intrinsic value as measured by book value per share consistently increased, signaling strengthening equity. Share price movements showed volatility with notable declines in 2022 before a strong rebound in 2024. The reduction in P/BV ratio during the middle years indicated increasing investor skepticism or market adjustments, but the subsequent rise in 2024 suggests renewed investor confidence or market re-rating of the stock. The divergence between share price and book value trends over time highlights changing market perceptions and valuation dynamics.