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>>At $50B Market Cap, Tesla should be delivering at least $2B Annual profits There is no rule like that on a growth stock. You don't value growth stock on a P/
by dmode 8y ago
>>At $50B Market Cap, Tesla should be delivering at least $2B Annual profits
There is no rule like that on a growth stock. You don't value growth stock on a P/E ratio, but some measure of future discounted cashflows.
- querulous 8y agotesla already has a market cap bigger than both ford and gm. you have to believe tesla is going to be the sole major north american car manufacturer in the near future to think tesla is a growth stock
- dmode 8y agoWhile we can argue whether the $50B market cap is too much, i was only commenting on a hard rule around valuation and earnings for a company in growth mode. I mean, I haven't looked at the P/E ratios but I bet Amazon's will look out of whack compared to Walmart's