TSLA Relative Valuation
TSLA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TSLA is overvalued; if below, it's undervalued.
Historical Valuation
Tesla Inc (TSLA) is now in the Overvalued zone, suggesting that its current forward PE ratio of 216.79 is considered Overvalued compared with the five-year average of 97.55. The fair price of Tesla Inc (TSLA) is between 123.13 to 265.00 according to relative valuation methord. Compared to the current price of 432.96 USD , Tesla Inc is Overvalued By 63.38%.
Relative Value
Fair Zone
123.13-265.00
Current Price：432.96
63.38%
Overvalued
216.79
PE
1Y
3Y
5Y
92.99
EV/EBITDA
Tesla Inc. (TSLA) has a current EV/EBITDA of 92.99. The 5-year average EV/EBITDA is 48.59. The thresholds are as follows: Strongly Undervalued below 13.79, Undervalued between 13.79 and 31.19, Fairly Valued between 66.00 and 31.19, Overvalued between 66.00 and 83.40, and Strongly Overvalued above 83.40. The current Forward EV/EBITDA of 92.99 falls within the Strongly Overvalued range.
235.51
EV/EBIT
Tesla Inc. (TSLA) has a current EV/EBIT of 235.51. The 5-year average EV/EBIT is 91.54. The thresholds are as follows: Strongly Undervalued below -5.68, Undervalued between -5.68 and 42.93, Fairly Valued between 140.15 and 42.93, Overvalued between 140.15 and 188.76, and Strongly Overvalued above 188.76. The current Forward EV/EBIT of 235.51 falls within the Strongly Overvalued range.
14.39
PS
Tesla Inc. (TSLA) has a current PS of 14.39. The 5-year average PS is 9.21. The thresholds are as follows: Strongly Undervalued below 3.01, Undervalued between 3.01 and 6.11, Fairly Valued between 12.31 and 6.11, Overvalued between 12.31 and 15.42, and Strongly Overvalued above 15.42. The current Forward PS of 14.39 falls within the Overvalued range.
96.54
P/OCF
Tesla Inc. (TSLA) has a current P/OCF of 96.54. The 5-year average P/OCF is 56.30. The thresholds are as follows: Strongly Undervalued below 18.88, Undervalued between 18.88 and 37.59, Fairly Valued between 75.01 and 37.59, Overvalued between 75.01 and 93.72, and Strongly Overvalued above 93.72. The current Forward P/OCF of 96.54 falls within the Strongly Overvalued range.
623.27
P/FCF
Tesla Inc. (TSLA) has a current P/FCF of 623.27. The 5-year average P/FCF is 160.06. The thresholds are as follows: Strongly Undervalued below -94.35, Undervalued between -94.35 and 32.86, Fairly Valued between 287.27 and 32.86, Overvalued between 287.27 and 414.48, and Strongly Overvalued above 414.48. The current Forward P/FCF of 623.27 falls within the Strongly Overvalued range.
Tesla Inc (TSLA) has a current Price-to-Book (P/B) ratio of 18.21. Compared to its 3-year average P/B ratio of 13.45 , the current P/B ratio is approximately 35.38% higher. Relative to its 5-year average P/B ratio of 19.06, the current P/B ratio is about -4.47% higher. Tesla Inc (TSLA) has a Forward Free Cash Flow (FCF) yield of approximately 0.47%. Compared to its 3-year average FCF yield of 0.58%, the current FCF yield is approximately -19.47% lower. Relative to its 5-year average FCF yield of 0.64% , the current FCF yield is about -27.05% lower.
18.21
P/B
Median3y
13.45
Median5y
19.06
0.47
FCF Yield
Median3y
0.58
Median5y
0.64
Competitors Valuation Multiple
The average P/S ratio for TSLA's competitors is 4.24, providing a benchmark for relative valuation. Tesla Inc Corp (TSLA) exhibits a P/S ratio of 14.39, which is 239.07% above the industry average. Given its robust revenue growth of 11.57%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TSLA increased by 7.01% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 218.13 to 302.30.
The secondary factor is the Revenue Growth, contributed 11.57%to the performance.
Overall, the performance of TSLA in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Tesla Inc (TSLA) currently overvalued or undervalued?
Tesla Inc (TSLA) is now in the Overvalued zone, suggesting that its current forward PE ratio of 216.79 is considered Overvalued compared with the five-year average of 97.55. The fair price of Tesla Inc (TSLA) is between 123.13 to 265.00 according to relative valuation methord. Compared to the current price of 432.96 USD , Tesla Inc is Overvalued By 63.38% .
What is Tesla Inc (TSLA) fair value?
TSLA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Tesla Inc (TSLA) is between 123.13 to 265.00 according to relative valuation methord.
How does TSLA's valuation metrics compare to the industry average?
The average P/S ratio for TSLA's competitors is 4.24, providing a benchmark for relative valuation. Tesla Inc Corp (TSLA) exhibits a P/S ratio of 14.39, which is 239.07% above the industry average. Given its robust revenue growth of 11.57%, this premium appears unsustainable.
What is the current P/B ratio for Tesla Inc (TSLA) as of Jan 07 2026?
As of Jan 07 2026, Tesla Inc (TSLA) has a P/B ratio of 18.21. This indicates that the market values TSLA at 18.21 times its book value.
What is the current FCF Yield for Tesla Inc (TSLA) as of Jan 07 2026?
As of Jan 07 2026, Tesla Inc (TSLA) has a FCF Yield of 0.47%. This means that for every dollar of Tesla Inc’s market capitalization, the company generates 0.47 cents in free cash flow.
What is the current Forward P/E ratio for Tesla Inc (TSLA) as of Jan 07 2026?
As of Jan 07 2026, Tesla Inc (TSLA) has a Forward P/E ratio of 216.79. This means the market is willing to pay $216.79 for every dollar of Tesla Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Tesla Inc (TSLA) as of Jan 07 2026?
As of Jan 07 2026, Tesla Inc (TSLA) has a Forward P/S ratio of 14.39. This means the market is valuing TSLA at $14.39 for every dollar of expected revenue over the next 12 months.