Is Tesla Overvalued? Why You Can't Value Tesla with a PE Ratio
Tesla has a very high PE ratio, but you shouldn't use a PE ratio to value Tesla. Or at least you shouldn't us a trailing PE ratio to value Tesla. A forward PE ratio is a much better way to value Tesla. High growth companies move too fast for trailing PE ratios to be accurate. Forward PE ratios give a much better picture of the valuation of high growth companies like Tesla. Tesla stock is actually undervalued according to its forward PE ratio.
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