“Tesla hasn’t traded at these levels since 2018,” the Wedbush analyst said Dan Ives he wrote in an email to Yahoo Finance. on EV/EBITDA [earnings before interest, taxes, depreciation, and amortization] On the basis that it is the cheapest appraisal so far.”
Ives – a former Tesla bull made headlines in mid-November for the Removing EV maker stock from Wedbush’s list of top ideas – Not too far from Tesla stock being remarkably cheap by historical standards.
Tesla stock is trading at a forward price-to-earnings multiple of 32 times, According to data from Yahoo Finance. That’s a discount of about 70% from its historical average multiple. And from a forward EV/EBITDA perspective, Tesla stock is trading at a discount of 53% to its historical average.
Stocks trade at significant discounts from the forward enterprise value to EBIT [earnings before interest and taxes] And enterprise value for sales perspectives too.
Those valuation metrics were compressed even further just on Tuesday amid another 4% drop in Tesla stock, which sent Tesla taking a hit. The most visited ticker page on Yahoo Finance.
Year-to-date, shares are down 54%.
Analysts like Ives point to some of the factors behind Tesla’s stock decline, which has wiped more than $260 billion off market value this year.
First, the risk of operational errors has increased at Tesla as Elon Musk works around the clock to fix his own The latest Twitter portfolio company.
“Musk went from superhero to Tesla stock to villain in the eyes of the street as the backlog grew with each tweet,” Ives said.
Second, there are still concerns about manufacturing issues and the pace of Tesla’s sales in China amid an uncertain approach to COVID-19 policies.
Finally, competition in the US electric vehicle space has only intensified this year — raising the risk of slower growth for Tesla in 2023 and beyond.