Tesla Inc. designs, develops, manufactures, and sells electric vehicles, electric vehicle powertrain components, and stationary energy storage systems in the United States, China, Norway, and internationally. The company was founded in 2003 and is based in Palo Alto, California.
TSLA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Tesla Inc. To summarize, we found that Tesla Inc ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. In terms of the factors that were most noteworthy in this DCF analysis for TSLA, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 94. Its equity weight surpasses that of 92.76% of free cash flow generating stocks in the Consumer Cyclical sector.
The company's compound free cash flow growth rate over the past 0.76 years comes in at -0.34%; that's greater than only 4.81% of US stocks we're applying DCF forecasting to.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than only 15.92% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DIS, DJCO, FAT, GDEN, and GOOS can be thought of as valuation peers to TSLA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The bear camp on Tesla ([[TSLA]] +0.4%) is cracking a bit under the pressure of a share price rally of 146% over 90 days. "While we still believe TSLA is fundamentally overvalued, we see nothing to prevent the shares moving higher in the coming weeks," notes Barclays analyst Brian Johnson....
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