ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. At the end of 2022 the company had a P/E ratio of -23.3. Looking back at the last ten years, COST’s PE ratio peaked in the Nov 2024 quarter at 56.47, with a price of $964.01 and an EPS of $17.07.
That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. As an investor, you want to buy stocks with the highest probability of success. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months.
Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. A bond’s yield is a function of its market price, which can fluctuate; therefore a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here.
This is extremely high for a top 10 company in the SP500. How is TSLA’s pe ratio calculated? Forward pe ratio of 52.63 is in the bottom 10% of its industry.
- The company name is based on the physicist and inventor Nikola Tesla.
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- The Price/Earnings ratio measures the relationship between a company’s stock price and its earnings per share.
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- Tesla, Inc. is an American company that manufactures and sells electric cars, as well as power storage and photovoltaic systems.
- S&P 500 P/E Ratio is at a current level of 28.77, up from 27.87 last quarter and up from 23.27 one year ago.
- Cash from Operations (TTM)
- Those studies that adjust for differences in risk across stocks confirm that low PE stocks continue to earn higher returns after adjusting for risk.
- ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
- The current P/E ratio of 34.86 is 87% lower than the historical average.
What is the market capitalization of a company?
Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. It is the most commonly used metric for determining a company’s value relative to its earnings. Price to Earnings Ratio or P/E is price / earnings. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.
Tesla, Inc. (TSLA) and other stocks custom spreadsheet templates
The only possibility is the stock getting delisted from the exchange, when technically it’s a zero value stock. That’s why today’s P/E ratio of around 30 isn’t as alarming as it would have been in the past. It operates in two segments, Automotive, and Energy Generation and Storage. Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage pe ratio tesla systems in the United States, China, and internationally. The last stock split was on August 25, 2022.
Investors should consider their investment objectives and risks carefully before investing in options. Options transactions are often complex, and investors can rapidly lose the entire amount of their investment or more in a short period of https://icdslimited.com/natural-business-years-financial-definition-of-2/ time. This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure.
You should evaluate each bond before investing in a Bond Account. The Bond Account’s yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees. In general, when interest rates go up, Bond prices typically drop, and vice versa. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. Rebate rates vary monthly from $0.06-$0.18 and depend on your current and prior month’s options trading volume.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score.
A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. The current P/E ratio of 34.86 is 87% lower than the historical average. Tesla’s P/E ratio of 37.47 reflects its status as a high-growth company with significant investor expectations. Investors should carefully evaluate Tesla’s financial performance, market position, and future prospects before making investment decisions. It indicates how much investors are willing to pay for each dollar of a company’s earnings.
P/E ratio for similar companies or competitors
But it doesn’t stop there, as different industries can have different average P/E ratios. 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. The PE ratio marks a decrease of 44% from its last 4 quarters average of 62.1. By the end of 2022, the company’s P/E ratio stood at thirty.
And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is. It also shows what the market is willing to pay today for a stock based on its past or future earnings. AP/E ratio below this range is generally considered good, while a higher ratio suggests the stock may be overpriced.
Financial Efficiency
Those studies that adjust for differences in risk across stocks confirm that low PE stocks continue to earn higher returns after adjusting for risk. Thus, the evidence is overwhelming that low PE stocks earn higher returns than high PE stocks over long periods. While a low PE ratio is desirable, a company could trade at lower PE for undesirable reasons. 10 could be a fair PE ratio for a steel stock but could be too low for Technology.
However, the ratio has since declined, stabilizing around the current level of 37.47. This indicates that investors are willing to pay $37.47 for every dollar of Tesla’s earnings. Zacks Ranks stocks can, and often do, change throughout the month.
The most recent financial reports and stock price for Tesla indicate that the company’s price-to-earnings ratio (TTM) is 51. The P/E ratio measures the relationship between a company’s stock price and its earnings per share (EPS). A high P/E ratio can result from strong investor interest, company growth, optimistic future projections, or a rising stock price with falling earnings.
TSLA 411.71 +0.39(0.09%)
Therefore a higher PE ratio above that may be deemed negative, while a lower PE ratio may be considered better. A good P/E ratio isn’t always a high or low ratio on its own. Create your account and connect with a world of communities. Long term I like the current valuation where it is, if you’re going to hold 5+ years. If you even assume a 50x forward PE on that high end, that’s only $165/share and still trading at a premium. I think EPS for 2025 is reported to be between $2.55 and $3.30/share.
Companies with a positive P/E ratio bellow 10 are generally seen as “value stocks” meaning that the company https://promopneus06.fr/credit-sales-journal-entry-entries-with-gst-tax-2/ is already very profitable and unlikely to strong growth in the future. The justified price to earnings ratio is the price to earnings ratio that is “justified” by using the Gordon Growth Model. The market average P/E ratio is currently between 20 and 25. Tesla’s P/E ratio of 37.47 indicates that investors are optimistic about the company’s future growth potential. Tesla’s P/E ratio has experienced significant fluctuations over the past years, mirroring the company’s rapid growth and evolving market perception. 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.
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