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Still, by every metric, Tesla is vastly overpriced. People say the fundamentals don't matter anymore, and in the short term that may be true, but long run they
by another_story 5y ago
Still, by every metric, Tesla is vastly overpriced. People say the fundamentals don't matter anymore, and in the short term that may be true, but long run they always come back to Earth.
- epgui 5y agoEvery company that is growing fast will be "overpriced" by any metric if your metrics don't take this growth into account. When people point to the "fundamentals", sometimes they are failing to recognize the things that are really fundamental to business valuation and instead focus on the wrong metrics (eg.: PE, EPS, all need to be interpreted within context, and sometimes a PE ratio of 1000 is entirely normal and justified).
- another_story 5y agoWhile this is true, especially of small growth companies, Tesla is a giant. I can't really see Telsa growing to fit its current valuation.