Using the industry peer median P/E multiple (trailing + forward), Tesla, Inc. (TSLA) has a fair value of $42.89 based on 10 comparable companies in the Auto - Manufacturers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Tesla, Inc.TSLA | 1,361,632 | 357.4x | 194.7x |
| Amazon.com, Inc.AMZN | 2,272,690 | 29.5x | 27.3x |
| The Home Depot, Inc.HD | 331,184 | 23.4x | 22.1x |
| McDonald's CorporationMCD | 221,367 | 26.0x | 23.5x |
| The TJX Companies, Inc.TJX | 176,434 | 32.5x | 33.8x |
| Booking Holdings Inc.BKNG | 135,358 | 25.4x | 15.6x |
| Lowe's Companies, Inc.LOW | 132,177 | 19.9x | 18.7x |
| Starbucks CorporationSBUX | 103,551 | 55.8x | 42.2x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| Industry Median | 30.4x | 26.8x | |
| (*) Profit after tax | 3,794 | 6,994 | |
| Equity Value | 115,229 | 187,401 | |
| (/) Outstanding shares | 3,528 | 3,528 | |
| Fair Price | $33 | $53 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.