Tesla's Price/Earnings (P/E) ratio is currently around 235. Industry average P/E ratio for US domestic automotive companies is 15.8. Toyota's P/E ratio is 8.2. BYD, the Chinese electric car juggernaut has a P/E ratio around 22. Tesla's is 10 to 15 times higher. The price of its stock relative to the company earnings is insane against comparables. This is insupportable and non sustainable. Tesla stock is far out of balance. People will say it's a tech company, not an auto company, but, as an ex-supplier to them before I retired, I can tell you their cars are their principle source of revenue.

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Bro turned Wall Street into Chuck E.

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Valuation can be computed with revenue. A typical small business has a valuation that’s around 2-3 times its annual revenue. P/E ratio is more or less this multiplier applied to stocks, since valuation and capitalization are, in theory, linked. So Apple would acquire a controlling stake in China with a stock swap, assuming sufficient capitalization. However, a proper multiplier is difficult to assess for big countries, since they tend to own more nuclear weapons than most companies, and therefore can affect the volatility (and radioactivity) of the industry to a significant degree.

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Companies should never be trading above 60 P/E...

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That's been priced in for the past two year. Why do you think google was trading at 15x P/E ratio at one point. No matter what happens, whether AI is hot trash or not, google will be able to dominate the market. They already have the framework to deploy their AI unlike the others. People are not smart enough to realize that these search predictions and youtube recommendations have always been using ML/AI.

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Watch the demis hasbais podcast from the weekend. $GOOGL deepmind alone can carry it to $300. It's cloud revenue is growing big time. CEO let it slip last week that backlog>revenue growth which means at 30%+ so $25b a year. Search is not declining, Gemini is #1 on IoS and more downloads MoM then other LlM, Google education program rolling out across schools, some big cloud partnerships and soon $AAPL integration of Gemini into phones. It's at a 25.5 P/E ON FY25 revenues. Still undervalued considering $amzn $msft are 35+ So much big market movers coming.

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google was legit free money with P/E at like 15

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What do you make of Tesla’s P/E ratio? It… seems high

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They gotta upgrade their p/e and net income first to even consider $15-$19 range

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P/E ratio doesn’t mean anything anymore, it’s boomer theory

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