Originally Posted by
Trip7
Yet I talk about a stock(BABA) that is Undervalued by about 30%. I didn't proclaim BABA was going to $2000. Put your pitch fork down.
I have provided specific examples of TSLA's eyewatering valuation based on its Enterprise Value. You haven't provided any ideas how TSLA will not only increase earning to justify its current price, but also drive shareholder returns going forward.
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Time, technology, founder.
Seem over simplistic? That’s because it is. Investing for the long haul super simple.
Since you like complicated and metrics how about this;
On a trailing basis TSLA is 40x EV/EBITDA. Operating earnings are growing faster than sales. This is as of May of this year, last time I looked at any of that. Of course this metric is basically useless now, since the stock price has gone up. Regardless, If this continues, by that metric, Tesla is dirt cheap. They’re not even operating at scale yet. This also doesn’t take into account optionality such as subscription revenue.
That’s the problem with metrics, and why I largely ignore them. You can find one to fit your thesis any day. They sound smart but they’re mostly created to make people feel that way.