Research on the Value of Tesla Inc. based on Three Valuation Methods

Authors

  • Yifei Jiang
  • Ziyan Shi
  • Tianchen Li

DOI:

https://doi.org/10.54691/bcpbm.v13i.90

Keywords:

TASLA; WACC; DCF; Multiple Method; Overvalued.

Abstract

This article describes how to use three different methods to estimate whether Tesla is worth investing, and each method has been accurately calculated and speculated. In the introduction part, Tesla’s current situation and history are addressed. In the theoretical framework, WACC, DCF, and Multiple method are discussed in turn, and they take different approaches. In the WACC section, the author uses a lot of data and context; in the DCF section, various terms are adopted; in multiple methods, the author makes a few tables for clarity. Finally, compared with the market value, Tesla's actual value is overestimated. The reference section summarizes all the data sources mentioned above.

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References

Akanksha Rana Reuters & Arunima Kumar Reuters, (April 2021), Tesla first-quarter deliveries beat estimates, Tesla first-quarter deliveries beat estimates | Nasdaq.

Mike Murphy, (2021), Tesla stock upgraded by Wedbush after ‘paradigm changer’ delivery numbers, Tesla stock upgraded by Wedbush after 'paradigm changer' delivery numbers | Morningstar.

(2020), Tesla STOCK TO BE ADDED ALL AT ONCE TO S&P 500, Tesla stock to be added all at once to S&P 500 - ValueWalk.

Information on: https://finance.yahoo.com.

Carla Nunes & James P. Harrington, (2020), Duff & Phelps Recommended U.S. Equity Risk Premium Decreased from 6.0% to 5.5%, Effective December 9, 2020, Duff & Phelps Recommended U.S. Equity Risk Premium Decreased from 6.0% to 5.5%, Effective December 9, 2020 (duffandphelps.com).

Information on: https://finance.yahoo.com.

(2021), Bitcoin in 2020 rose in price almost by 300%, is it a Fact?, Bitcoin in 2020 rose in price almost by 300%, is it a Fact? | BITCOIN AND COMMUNITY MEMBERS (bitcoinmembers.com).

Information on: https://finbox.com.

Information on: https://finance.yahoo.com.

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Published

2021-11-16

How to Cite

Jiang, Y. ., Shi , Z. ., & Li, T. . (2021). Research on the Value of Tesla Inc. based on Three Valuation Methods. BCP Business & Management, 13, 290-296. https://doi.org/10.54691/bcpbm.v13i.90