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Debt in itself doesn't matter when you value a company. What you want to look at is shareholder equity, which is assets net of liabilities. When you look at tha
by KKKKkkkk1 4y ago
Debt in itself doesn't matter when you value a company. What you want to look at is shareholder equity, which is assets net of liabilities. When you look at that indicator, Tesla comes behind GM and Ford.
Tesla: $31.0 bn
GM: $65.3 bn
Ford: $42.1 bn
- DennisP 4y agoThat's a good way to look at it, sure. But it includes the value of fixed assets like factories. Debt compared to income is still a valuable indicator, since it's income that makes the debt payments, and also pays for things like R&D.
- megaman821 4y agoYou can quibble with the real value of GM and Ford's assets. If I built a factory for a billion dollars that makes horse buggies, is it actually worth a billion dollars if I was forced to liquidate it?
- deleted 4y ago[deleted]