The goal is to compute a price for Tesla, Inc Some information about Tesla - The market price of Tesla is $655 Shares outstanding 959 85 million Market cap is $6287 billion Predicted earnings per share (EPS)-3.52 Predicted sales are 62 73 billion. Given the number of shares, the predicted sales per share-65:35 - Predicted book value per share-23.15 . This table shows information for the market cap and multiples of other firms in the industry: Market cap Predicted Predicted Predicted Price to Price to Book Price to Sales Earnings (P/E) (P/B) (P/S) 141.29 28.28 22.49 10.4 0.71 9.53 1.29 24.6 0.32 4.74 0.9 Tesla GM Ford Nissan 628.7 8.66 51.05 22.41 Volkswagen 75.1 1.92 1.65 0.66 1.08 Media Question: What is the value of Tesla using P/E multiples? Note: only using P/E multiples)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:O O O O 40.5 25.5 36.6 30.6 63.3
The goal is to compute a price for Tesla, Inc Some information about Tesla
- The market price of Tesla is $655 Shares outstanding 959.85 million Market cap is $628.7 billion
Predicted earnings per share (EPS)-3.52
Predicted sales are 62 73 billion. Given the number of shares, the predicted sales per share-65:35
Predicted book value per share-23.15
.
This table shows information for the market cap and multiples of other firms in the industry
Market cap
Predicted
Predicted
Predicted
Price to
Price to Book Price to Sales
Earnings (P/E) (P/B)
(P/S)
141.29
28.28
22.49
10.4
0.71
9.53
1.29
24.6
0.32
4.74
0.9
Tesla
GM
Ford
Nissan
Volkswagen
628.7
8.66
51.05
22.41
75.1
1.92
1.65
0.66
1.08
Media
Question: What is the value of Tesla using P/E multiples?
Note: only using P/E multiples)
Transcribed Image Text:The goal is to compute a price for Tesla, Inc Some information about Tesla - The market price of Tesla is $655 Shares outstanding 959.85 million Market cap is $628.7 billion Predicted earnings per share (EPS)-3.52 Predicted sales are 62 73 billion. Given the number of shares, the predicted sales per share-65:35 Predicted book value per share-23.15 . This table shows information for the market cap and multiples of other firms in the industry Market cap Predicted Predicted Predicted Price to Price to Book Price to Sales Earnings (P/E) (P/B) (P/S) 141.29 28.28 22.49 10.4 0.71 9.53 1.29 24.6 0.32 4.74 0.9 Tesla GM Ford Nissan Volkswagen 628.7 8.66 51.05 22.41 75.1 1.92 1.65 0.66 1.08 Media Question: What is the value of Tesla using P/E multiples? Note: only using P/E multiples)
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