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Tesla (NAS:TSLA) GF Value Rank

: 8 (As of Today)
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Tesla has the GF Value Rank of 8.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Tesla's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Tesla GF Value Rank Related Terms

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Tesla (NAS:TSLA) Business Description

Tesla logo
1 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.
Zachary Kirkhorn officer: Chief Financial Officer 3500 DEER CREEK ROAD, PALO ALTO CA 94304
Xiaotong Zhu officer: SVP, Automotive 1 TESLA ROAD, AUSTIN TX 78725
Joseph Gebbia director C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Robyn M Denholm director 4150 NETWORK CIRCLE, SANTA CLARA CA 95054
Vaibhav Taneja officer: Chief Accounting Officer 3500 DEER CREEK ROAD, PALO ALTO CA 94304
Elon Musk director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC., 3500 DEER CREEK ROAD, PALO ALTO CA 94304
Ira Matthew Ehrenpreis director 100 SHORELINE HWY, SUITE 282, BLDG. B, MILL VALLEY CA 94941
Andrew D Baglino officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD, FREMONT CA 94538
Hiromichi Mizuno director 1-2-33-A504, KOMAZAWA, SETAGAYA, TOKYO M0 154-0012
Lawrence Joseph Ellison director C/O DELPHI ASSET MGMT CORPORATION, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Kathleen Wilson-thompson director PO BOX 3599, BATTLE CREEK MI 49016-3599
Morton David H Jr officer: Chief Accounting Officer SEAGATE TECHNOLOGY, 920 DISC DRIVE, SCOTTS VALLEY CA 95066
John Douglas Field officer: Senior VP, Engineering ONE AMERICAN ROAD, DEARBORN MI 48126
Jon Mcneill officer: President, WW Sales/Service 45500 FREMONT BLVD, FREMONT CA 94538
James R Murdoch director C/O LUPA SYSTEMS, 363 LAFAYETTE STREET, NEW YORK NY 10022