Book value reveals how much the company is worth if it were liquidated and all assets were sold for cash. Regarding the innovation of the battery and its range 250 miles, tesla has an important edge over its. The book value of equity is often broken out for us under the heading shareholders or shareowners equity. That gave tesla an eyewatering bs to book ratio of 60. Find the latest book value per share for tesla, inc. Heres how to rationally value teslas stock marketwatch.
The book value of equity is an accounting measure based on the historic cost principle and reflects past issuances of equity, augmented by any profits or. This is the financialssite for the company tesla on markets insider. Learn about tsla with our data and independent analysis including price, star. Nasdaq gs including stock price, stock chart, company news, key statistics, fundamentals and company profile. Return on equity represents the percentage return a company generates on the money shareholders have invested. Price book value is a widely used stock evaluation measure. Question 6 the market value of capital should be more relevant, because the market value is the current value that will mean anything.
Tsla, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. Since income is earned over the course of a year, we average book value of common equity at the start and end of the year for the denominator. The ratio of market capitalization to book value per share for tesla is about 14,602,739,726 tesla is rated second in market capitalization category among related companies. Total stockholders equity is a balance sheet item and equal to total assets less total liabilities of the company. Look on the balance sheet to find the book value of debt and the book value of equity. Tesla inc s current price to book ratio has increased due to shareprice growth of 140. Book value wacc weighted average cost of capital wacc is defined as the weighted average of cost of each component of capital equity, debt, preference shares etc where the weights used are target capital structure weights expressed in terms of market values. All of tesla s convertible debt issues have used an accounting principle known as bifurcation. The cost of capital for tesla using market value weights is higher than book value weights be more relevant because it represent the target capital structure instead of the current capital structure. Tesla price to book ratio 20092019 tsla macrotrends. Total shareholders equity common shares outstanding. A measure of a companys financial leverage calculated by dividing its longterm debt by shareholders equity. During the past 12 years, the highest pb ratio of tesla was 61.
The market value of equity e is also called market cap. Tsla environment, social and governance ratings to help you in your stock buying decisions. The pb ratio measures the markets valuation of a company relative to its book value. Tesla s market capitalization has skyrocketed into the stratosphere to. In my experience, most financial websites are fairly accurate with pb ratios. Tsla stock tesla stock price today markets insider. The headlines about the valuation of tesla seem to multiply along with the companys share price. Book value per share can be defined as the amount of equity available to. Meanwhile, ford motor companys price to book and price tosales are 1. Tesla book value per share analysis book value per share b s is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. The result is to temporarily increase the book value of equity. The weighted average cost of capital or wacc is a discount rate used to find the present value a companys future cash flows that is applied in various discounted cash flow analyses.
Historical price to book ratio values for tesla tsla over the last 10 years. Current and historical book value per share for tesla tsla from 2009 to 2019. The growth of tesla shares outstanding and effect on stock. We value tesla as an automotive company under an optimistic scenario. Heres why the equity value reflects the insanity that is the cult of elon musk.
If you look further down the report, you should find a section titled either longterm debt or longterm debt and interest rate risk management that will list a breakdown of tesla s longterm debt. Even though tesla s valuation may not add up on paper, its brand power speaks for itself. Book value is an accounting term denoting the portion of the company held by the shareholders at accounting value not market value. Its book value per share for the quarter that ended in jun. By dividing book value by the total number of shares outstanding, you can find book value. Tesla book value per share 20092019 tsla macrotrends. The current price to book ratio for tesla as of april 22, 2020 is 16. Indepth view of key statistics and finances for tesla, inc. Book value is the total value of a business assets found on its balance sheet, and represents the value of all assets if liquidated. Market capitalization of auto manufacturers industry is at this time estimated at about 257.
It was founded in 2003 and headquartered in california, us. Does it make a difference in this case if you use book value weights or market value weights. Tesla went public in 2010 and employs about 50,000 people. In addition, the equity research on electric trucks conducted by deutsche bank lache, 2017 has been used to identify electric trucks market potential as a value driver for tesla. Book value per share is a widely used stock evaluation measure.
This conversion price represented a premium of 25 percent above the then prevailing stock price. Broadly speaking, a companys assets are financed by either debt or equity. In other words, book value is the companys total tangible assets less its total liabilities. What is the weighted average cost of debt for tesla using the book value weights and the market value weights.
The market value of equity is typically higher than the book. The market value of debt is typically difficult to calculate, therefore, gurufocus uses book value of debt d to do the calculation. The amount of equity available to shareholders expressed on a per common share basis. The book value of equity represents the equity of shareholders from a balance sheet perspective less the preferred stock. What tesla s valuation says about the power of branding. There is no amount of rationalization for why the equity value is so high despite the fact that tesla is an automotive company being valued like a tech company.
Price to book value is a financial ratio used to compare a companys book value to its current market price. Tsla, the equity research firm assumed the companys revenue to grow at 67. Tesla market capitalization vs book value per share tsla. What is the weighted average cost of debt for tesla using. Ycharts book value of equity is the equivalent of total assets less total liabilities and preferred equity. Pricetobook ratio pb ratio definition investopedia. The net income used in the numerator is often adjusted for onetime and nonrecurring items to present a clearer view of future earnings. It indicates the level of safety associated with each common share after removing the effects of liabilities. We build a valuation model that assumes 1 million tesla vehicles sold in 2020 and 2 million vehicles sold in 2025. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. In depth view into tesla price to book value including historical data from 2010, charts, stats and industry comps.708 1431 1341 1450 168 50 1389 979 520 1094 1199 1472 122 330 704 477 1307 503 848 1301 1455 418 734 557 427 57 271 1336 989 470 1134 672 118 1008 914 400 1448 646 1465 139