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As a pro Tesla techie+investor, I'm willing to pay up to $N per share for Tesla. The more below $N it is, the more I feel I'm getting a better deal. That does

As a pro Tesla techie+investor, I'm willing to pay up to $N per share for Tesla. The more below $N it is, the more I feel I'm getting a better deal. That doesn't have much to do with how much I believe, or don't believe in Tesla as a company. I'm willing to pay up to a certain amount for a Model 3, just like I'm willing to pay up to a certain amount for a share of Tesla. No matter how much I like a Model 3, I'm not going to buy the last car on the lot for 2x the price because it's the last one. I'll just wait until there's another one at the regular price.

tachyonbeam 9y ago
How do you calculate what you believe is a fair price for Tesla shares? What would your current fair price be?
- amorphid 9y ago
  >> How do you calculate what you believe is a fair price for Tesla shares? That is the question for which everyone wants to an answer that only they know :) You can build really sophisticated models to predict stock prices, but all models are really just making guesses about what a fair stock price is. Some common questions to ask are: - Does it have a positive the ACID test ratio? [1] Looking at the balance sheet [2], do the current assets exceed the current liabilities? If everyone thinks Tesla can pay it's bills, but you think they will have trouble doing so, you may believe a fair price is lower than what everyone else thinks. - Does the company have a sensible price-to-earnings ratio? [3] Looking at the stock info [4], how much weight should you put on the P/E when determining what a fair price is? - How fast is the company growing? Looking at the income statement [5], do you believe Tesla will grow faster or slower than it has been? And is your estimate higher or lower than what other people are guessing? - How much will Tesla have to pay for Lithium in the future? [6] Do you predict that Lithium will cost more or less than the other people are guessing, and how much should your estimate factor into determining a fair value for Tesla stock. [1] http://www.investopedia.com/terms/a/acidtest.asp http://www.investopedia.com/terms/a/acidtest.asp [2] https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA [3] http://www.investopedia.com/terms/p/price-earningsratio.asp http://www.investopedia.com/terms/p/price-earningsratio.asp [4] https://finance.yahoo.com/quote/TSLA/?p=TSLA https://finance.yahoo.com/quote/TSLA/?p=TSLA [5] https://finance.yahoo.com/quote/TSLA/financials?p=TSLA https://finance.yahoo.com/quote/TSLA/financials?p=TSLA [6] https://www.metalary.com/lithium-price/ https://www.metalary.com/lithium-price/

tachyonbeam 9y ago

How do you calculate what you believe is a fair price for Tesla shares? What would your current fair price be?

amorphid 9y ago
>> How do you calculate what you believe is a fair price for Tesla shares? That is the question for which everyone wants to an answer that only they know :) You can build really sophisticated models to predict stock prices, but all models are really just making guesses about what a fair stock price is. Some common questions to ask are: - Does it have a positive the ACID test ratio? [1] Looking at the balance sheet [2], do the current assets exceed the current liabilities? If everyone thinks Tesla can pay it's bills, but you think they will have trouble doing so, you may believe a fair price is lower than what everyone else thinks. - Does the company have a sensible price-to-earnings ratio? [3] Looking at the stock info [4], how much weight should you put on the P/E when determining what a fair price is? - How fast is the company growing? Looking at the income statement [5], do you believe Tesla will grow faster or slower than it has been? And is your estimate higher or lower than what other people are guessing? - How much will Tesla have to pay for Lithium in the future? [6] Do you predict that Lithium will cost more or less than the other people are guessing, and how much should your estimate factor into determining a fair value for Tesla stock. [1] http://www.investopedia.com/terms/a/acidtest.asp http://www.investopedia.com/terms/a/acidtest.asp [2] https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA [3] http://www.investopedia.com/terms/p/price-earningsratio.asp http://www.investopedia.com/terms/p/price-earningsratio.asp [4] https://finance.yahoo.com/quote/TSLA/?p=TSLA https://finance.yahoo.com/quote/TSLA/?p=TSLA [5] https://finance.yahoo.com/quote/TSLA/financials?p=TSLA https://finance.yahoo.com/quote/TSLA/financials?p=TSLA [6] https://www.metalary.com/lithium-price/ https://www.metalary.com/lithium-price/