Is It The Right Time To Buy Tesla Inc (NASDAQ:TSLA)?

Tesla Inc (NASDAQ:TSLA) saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Tesla’s outlook and valuation to see if the opportunity still exists. View our latest analysis for Tesla

What’s the opportunity in Tesla?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12.86% below my intrinsic value, which means if you buy Tesla today, you’d be paying a fair price for it. And if you believe the company’s true value is $333.09, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Tesla’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Tesla?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Tesla’s earnings over the next few years are expected to increase by 86.23%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? TSLA’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on TSLA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Tesla. You can find everything you need to know about Tesla in the latest infographic research report. If you are no longer interested in Tesla, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Let's block ads! (Why?)