Tesla stock is down 50% from it's all time high, is it a good time to pick some up now?
Is Tesla undervalued now?
With Tesla's recent Q3 results,
experienced y-o-y revenue growth of 55%
bringing their LTM revenue up to USD75 billion.
At this point of writing (22Oct22)
Tesla's stock price has fallen up to 50% from their all time high price.
placing their current Price to Sale ratio at 11X.
However, with their current LTM revenue amount,
even when the stock bounce back to its' all time high price of $414 per share (priced during 4Nov2021)
that will give the stock a PS ratio of 17X.
Since Tesla's median Price to Sale ratio (since its inception) is 16X.
Its current valuation is an attractive range.
Needless to say, if Tesla just maintain a 25% rev growth into next year
which in reality, its revenue growth will likely far exceed the 25% figure
that will give Tesla's stock price a PS ratio of 14X
(assuming shares outstanding amount remains the same of 3.13bill)
which is considered to be undervalued.
How are Tesla products received in the market?
Valuation aside,
One of the most important metrics for a company's future success
is how their products & services offered
are received by the market they are serving.
and one way to find out is to look at the ratings & reviews of their products,
both by the customers & also from
prominent reviewers in the industry.
Attached in the google sheet is the reviews and ratings for Tesla's
Automotive segment (make up 96% of their Revenue)
Model 3
Model Y
Model S
Model X
note: 94% of the segment's sales come from Model 3 & Y
& Energy Generation and storage segment (make up 4% of total Revenue)
Tesla Solar Roof
Tesla Solar Panel products
How I decide which review websites to use?
As a general rule of thumb, the reviews site which I use should have high site traffic from the targeted visitors.
which can be confirmed through platforms like:
Google search trends
Summary
Although owners' reviews on sites like
Edmunds.com for their cars are not satisfactory
along with poor customer service feedbacks accumulated on sites like Trustpilot.com
The scores for Tesla's car products are high from:
reviewers' site
& also influential youtubers who do car reviews
Coupled with Tesla Model Y being awarded as the Best Electric Vehicle in 2022 on cars.com
give me confidence that Tesla cars are in a good position to continue to succeed in the EV space.