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