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There's "differences in valuation" and then there's Tesla's >300 PE ratio.
by AlexandrB 5y ago
There's "differences in valuation" and then there's Tesla's >300 PE ratio.
- Seanambers 5y agoThere's also significant difference in debt levels across the auto industry which also influences valuation. https://mobile.twitter.com/jpr007/status/1405525073218314248/photo/1 https://mobile.twitter.com/jpr007/status/1405525073218314248... With 50% CAGR the PE ratio does not seem so crazy, if growth were to stop, then yes it is crazy.
- panick21 5y agoLike a year ago people were 'omg Tesla PE ratio is 1000'. Its actually 174.87 now. PE is literally the worst way to evaluate a company that is growing. But seriously, that is one of the single worst ways to evaluate a company and instantly discredits anybody that uses it as their primary argument.