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Tesla (LIM:TSLA) Owner Earnings per Share (TTM)

: 1.96 (As of Mar. 2023)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Tesla's Owner Earnings per Share (TTM) ended in Mar. 2023 was $1.96. It's Price-to-Owner-Earnings ratio for today is 112.24.


The historical rank and industry rank for Tesla's Owner Earnings per Share (TTM) or its related term are showing as below:

LIM:TSLA' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 41.15   Med: 178.32   Max: 1025.88
Current: 110.43


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Tesla was 1025.88. The lowest was 41.15. And the median was 178.32.


LIM:TSLA's Price-to-Owner-Earnings is ranked worse than
90.65% of 556 companies
in the Vehicles & Parts industry
Industry Median: 16.66 vs LIM:TSLA: 110.43

Tesla's Earnings per Share (Diluted) for the three months ended in Mar. 2023 was $0.73. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $3.40. It's PE Ratio ratio for today is 64.71.

Tesla's EPS without NRI for the three months ended in Mar. 2023 was $0.73. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2023 was $3.40. It's PE Ratio without NRI ratio for today is 64.71.


Tesla Owner Earnings per Share (TTM) Historical Data

The historical data trend for Tesla's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tesla Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 1.78 2.48

Tesla Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.40 2.57 3.02 2.48 1.85

Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Tesla Owner Earnings per Share (TTM) Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Tesla's Owner Earnings per Share (TTM) falls in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.



Tesla Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Tesla's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 11,778
Depreciation, Depletion and Amortization 3,913
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 3,904
Change In Working Capital -4,836
Shares Outstanding (Diluted Average) 3,468

1. Start with "Net Income" from income statement. Tesla's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was $11,778 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Tesla's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2023 was $3,913 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Tesla's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2023 was $0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $3,904 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Tesla's 5-Year Average Maintenance Capital Expenditure = $3,904 Mil

5. "Change In Working Capital" is from cashflow statement. Tesla's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2023 was $-4,836 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Tesla's Shares Outstanding (Diluted Average) for the months ended in Mar. 2023 was 3468.000 Mil.

Tesla's Onwer Earnings Per Share for Mar. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 11778 +3913+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-3903.693938298+-4836)/3468.000
=1.96

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=220.00/1.96
=112.24

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Tesla Owner Earnings per Share (TTM) Related Terms

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Tesla (LIM:TSLA) Business Description

Tesla logo
Industry
Address
13101 Tesla Road, Austin, TX, USA, 78725
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.

Tesla (LIM:TSLA) Headlines