Should You Buy Tesla Inc (NASDAQ:TSLA)?

Let’s talk about the popular Tesla Inc (NASDAQ:TSLA). The company’s shares received a lot of attention from a substantial price increase on the NasdaqGS over the last few months. 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. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Tesla’s outlook and valuation to see if the opportunity still exists. View out our latest analysis for Tesla

What is Tesla worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10.39% below my intrinsic value, which means if you buy Tesla today, you’d be paying a fair price for it. And if you believe that the stock is really worth $384.73, then there’s not much of an upside to gain from mispricing. Furthermore, it seems like Tesla’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Tesla look like?

NasdaqGS:TSLA Future Profit June 14th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. In the upcoming year, Tesla’s earnings are expected to increase by 45.26%, 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? It seems like the market has already priced in TSLA’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on TSLA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining 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.

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