Is Tesla Overpriced? Let's Do a Reverse DCF Valuation! (necessary growth for current share price?)

Tesla DCF Valuation Model: I will do a reverse DCF to illustrate what kind of growth rates the market is pricing into Tesla's stock right now. Based on these assumptions, you can decide whether Tesla's stock is still worth buying or whether Tesla is overpriced.

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Don’t know what a DCF is: DCF stands for discounted cash flow method and basically the method attempts to measure the intrinsic value of a business by focussing on a business’s cash flows. It can be considered the most theoretically correct valuation method available but obviously relies heavily on your inputs and assumptions.

Before you start berating me in the comments, be aware that I point out in the video that this is kind of a back-of-the-envelope calculation and is certainly not perfect. I might very well get some of the inputs wrong. Feel free to jump in and correct me if you think some of the assumptions are just completely false.

Link to my first video on Tesla: https://youtu.be/H18IzImrfEI

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Music – PPB: High [NCS Music Without Limitations]
https://www.youtube.com/watch?v=Tv6WImqSuxA

Automotive PE Ratio 2006-2020: https://www.macrotrends.net/stocks/charts/GPI/group-1-automotive/pe-ratio
Current PE Ratio by sector: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html
Net Profits of the biggest car companies: https://www.investopedia.com/articles/company-insights/091516/most-profitable-auto-companies-2016-tm-gm.asp
QuickFS: https://quickfs.net/company/TSLA:US
Morningstar Financials: https://financials.morningstar.com/ratios/r.html?t=0P0000OQN8&culture=en&platform=sal

Chapters:
0:00 Intro
1:58 Valuation multiples
3:23 Is Tesla a car company?
05:05 DCF: Valuing Tesla based on its earnings potential
10:09 Margin of Safety Price
10:40: competition in the space is about to get fierce
11:20 Law of large numbers

DISCLAIMER
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

I hope you enjoyed the content!

Видео Is Tesla Overpriced? Let's Do a Reverse DCF Valuation! (necessary growth for current share price?) канала René Sellmann