Cyprus-Forum.com

[boomerang]

They are starting to wire Australia up too. There is a Tesla at work and they are Schmick!

Fully optioned long range model too. Nearly 100K worth.

man tesla can make money when all the other companies catch up without even selling a single car..they gotta use the tesla nozzles for charging...no choise

[miltiades]

the beginning of April, Tesla founder and CEO Elon Musk joked about the company going bankrupt, but it appears that such a seemingly unlikely outcome is no laughing matter. There is now a “genuine risk” that the electric car company won’t have enough money to make it out of this calendar year,Bloomberg reports.

[Lordo]

thanks gents.

[miltiades]

From the outset I wrote that I have been following Tesla for some time.
The issue that I have, based on financial experts comments, is that the valuation around 65billion $ is far too high, the debt is around 10 billion.
Now if you look at BMW valued at 45 b € you begin to wonder if Tesla's valuation is realistic. Yes there is a great future for electric cars, though Im rather cautious, water powered cars also have a great future. If anything I would invest in options , call, with Tesla.

[Paphitis]

Tesla just rolled out the Model 3 and have back orders. They have spent a lot of money getting this model to market and they have only been getting the windfall for a mass produced car for barely 2 years.

Plus they are investing in infrastructure within the USA, Canada, Australia and Europe.

Elon Musk isn't going bankrupt. He also has his battery plant and business and just built a huge energy storage facility in Adelaide - the biggest in the world.

I am predicting $1000 per share as well, over the next 5 years.

[Pyrpolizer]

From the outset I wrote that I have been following Tesla for some time.
The issue that I have, based on financial experts comments, is that the valuation around 65billion $ is far too high, the debt is around 10 billion.
Now if you look at BMW valued at 45 b € you begin to wonder if Tesla's valuation is realistic. Yes there is a great future for electric cars, though Im rather cautious, water powered cars also have a great future. If anything I would invest in options , call, with Tesla.

There is absolutely nothing in the stock markets whose valuation is not high to far too high.
People are not buying the real value. They buy hope.

[Paphitis]

Nonsense! The average P/E ratio since 1935 has remained consistently at about 15.86, which means stocks are normally valued at about 15.86 times for every 1 in profit.

Companies that are making a loss have no P/E ratio at all and are evaluated on other metrics. For instance, Tesla isn't forecast to make a profit for about 2 years because they are building infrastructure and investing in Research and Development. They are not even aiming to make a profit right now. They are building their business, and product.

P/E ratio or earnings per share is what determines whether you are buying a bargain or not. A P/E ratio less than 15.86 can signify good value, while a P/E Ratio above 15.86 can signify over value.

There is a fair bit of science behind the markets.

The P/E Ratio isn't the be all and end all either because it doesn't take into consideration cash reserves, and assets which add extra value to the business. If for instance a business has 1 Billion in the Bank, then this is additional value. QANTAS fleet of aircraft is also extra value.

P/E Ratio does take into consideration costs - including interest costs from accumulated debt.

In addition, the P/E ratio IS ALWAYS on the conservative side because all business have hidden profits - for instance when QANTAS buys a brand new A380. This is written off their profit/loss as an expence, but they have a 100 million dollar asset on the balance sheet which again they will depreciate to hide more profits over many years and not pay as much tax. But the A380 is technically a profit and indicated that the business is healthy since they are buying A380s.

A proper analyst knows what to look at. And they know how to make money too. They are not dealing in hope. This is finance and the Banks are also involved in it, and they are as conservative as all hell.

[Pyrpolizer]

First of all the historical average P/E ratio doesn’t mean anything. Depends on what kind of sector a stock belongs, and even that most of the times is not enough as there are huge variations in sections e.g. from 5-40%. There are huge variations among individual stocks too.

Secondly you misunderstood the context of saying the "valuation is high".
This means taking the value of the stock and assuming the valuation is based on all the parameters you mentioned including the historical and predicted future P/E growth, then the result is much higher than the real value of the company.
Which in turn means that either the current price of the stock is high, or the predicted P/E growth is unrealistic, or both.

My claim is that you will not find a single stock in the stock markets that sells below it’s intrinsic value unless there's a stock market crash. Hence by paying more you are actually paying for future hope.

[Oceanside50]

It seems to me we have some people on this forum that know quite a lot of information about the markets. it would really be helpful to post here any tips of how they feels shares will move and from which sector. perhaps we can all benefit.

the usual old batchoyero can stay out of this if you please sir.

thanks in advance.

Send me your money koLordo I take care of you.. No, thank you in advance, buddy

[Paphitis]

First of all the historical average P/E ratio doesn’t mean anything. Depends on what kind of sector a stock belongs, and even that most of the times is not enough as there are huge variations in sections e.g. from 5-40%. There are huge variations among individual stocks too.

Secondly you misunderstood the context of saying the "valuation is high".
This means taking the value of the stock and assuming the valuation is based on all the parameters you mentioned including the historical and predicted future P/E growth, then the result is much higher than the real value of the company.
Which in turn means that either the current price of the stock is high, or the predicted P/E growth is unrealistic, or both.

My claim is that you will not find a single stock in the stock markets that sells below it’s intrinsic value unless there's a stock market crash. Hence by paying more you are actually paying for future hope.

Yeh it does.

The P/E Ratio is the Earnings per share.

If a share price is $10.00, and the earnings (profit) per share is $1, then the P/E Ratio is 10

A share like that represents great value because it is profiting 10% of its share price and that is excellent. So, this share represents great value and a bargain.

The rule of thumb is that a share that has a P/E Ratio less than 15.86 is good, and anything over is over priced.

But it isn't the only metric by a long shot. It is only one aspect.

Plus there are variations because shares fluctuate in terms of their P/E ratio. Their earnings and expenses change. Sometimes due t bad performance and at other times deliberately.

For instance, QANTAS makes a profit for 10 years running then suddenly declares a technical loss of 700 million one year - because they bought 30 planes. So their P/E Ration went from 15 the previous year, to nothing the following year. Naturally their share price dropped, but all this meant was that it was a great time to Buy QANTAS Shares at $2 and by the following year they were up to $5.70 and declared a profit. The Banks and Institutional Traders know exactly what they are doing so don't worry.

Experts can spot these opportunities a mile away.