Intrinsic value of Tesla, Inc. - TSLA

Previous Close

$227.45

  Intrinsic Value

$1,846

stock screener

  Rating & Target

str. buy

+712%

Previous close

$227.45

 
Intrinsic value

$1,846

 
Up/down potential

+712%

 
Rating

str. buy

We calculate the intrinsic value of TSLA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  73.01
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  7,000
  34,338
  53,052
  79,339
  115,116
  162,413
  223,280
  299,707
  393,534
  506,383
  639,603
  794,241
  971,036
  1,170,425
  1,392,575
  1,637,421
  1,904,713
  2,194,070
  2,505,023
  2,837,069
  3,189,708
  3,562,480
  3,954,996
  4,366,958
  4,798,178
  5,248,591
  5,718,257
  6,207,374
  6,716,269
  7,245,405
  7,795,372
Variable operating expenses, $m
 
  29,921
  46,209
  69,089
  100,228
  141,393
  194,370
  260,889
  342,553
  440,773
  556,722
  691,279
  845,155
  1,018,696
  1,212,048
  1,425,153
  1,657,795
  1,909,641
  2,180,283
  2,469,284
  2,776,209
  3,100,656
  3,442,288
  3,800,845
  4,176,164
  4,568,187
  4,976,968
  5,402,678
  5,845,602
  6,306,143
  6,784,815
Fixed operating expenses, $m
 
  3,280
  3,352
  3,425
  3,501
  3,578
  3,657
  3,737
  3,819
  3,903
  3,989
  4,077
  4,167
  4,258
  4,352
  4,448
  4,546
  4,646
  4,748
  4,852
  4,959
  5,068
  5,180
  5,293
  5,410
  5,529
  5,651
  5,775
  5,902
  6,032
  6,164
Total operating expenses, $m
  7,667
  33,201
  49,561
  72,514
  103,729
  144,971
  198,027
  264,626
  346,372
  444,676
  560,711
  695,356
  849,322
  1,022,954
  1,216,400
  1,429,601
  1,662,341
  1,914,287
  2,185,031
  2,474,136
  2,781,168
  3,105,724
  3,447,468
  3,806,138
  4,181,574
  4,573,716
  4,982,619
  5,408,453
  5,851,504
  6,312,175
  6,790,979
Operating income, $m
  -667
  1,137
  3,491
  6,825
  11,387
  17,441
  25,253
  35,081
  47,162
  61,707
  78,891
  98,885
  121,714
  147,470
  176,175
  207,820
  242,373
  279,784
  319,992
  362,933
  408,541
  456,756
  507,528
  560,819
  616,604
  674,875
  735,639
  798,921
  864,765
  933,230
  1,004,393
EBITDA, $m
  280
  4,176
  8,168
  13,802
  21,495
  31,688
  44,825
  61,340
  81,631
  106,050
  134,891
  168,381
  206,680
  249,883
  298,026
  351,094
  409,035
  471,765
  539,182
  611,176
  687,640
  768,473
  853,591
  942,928
  1,036,445
  1,134,127
  1,235,986
  1,342,067
  1,452,439
  1,567,203
  1,686,488
Interest expense (income), $m
  39
  718
  1,642
  2,984
  4,869
  7,435
  10,827
  15,192
  20,673
  27,403
  35,496
  45,050
  56,140
  68,819
  83,119
  99,051
  116,611
  135,780
  156,532
  178,833
  202,647
  227,937
  254,671
  282,821
  312,366
  343,292
  375,595
  409,278
  444,356
  480,853
  518,801
Earnings before tax, $m
  -746
  418
  1,849
  3,841
  6,518
  10,006
  14,426
  19,888
  26,488
  34,304
  43,395
  53,835
  65,574
  78,651
  93,056
  108,769
  125,762
  144,003
  163,460
  184,100
  205,894
  228,819
  252,857
  277,998
  304,238
  331,583
  360,044
  389,643
  420,409
  452,377
  485,591
Tax expense, $m
  27
  113
  499
  1,037
  1,760
  2,702
  3,895
  5,370
  7,152
  9,262
  11,717
  14,535
  17,705
  21,236
  25,125
  29,368
  33,956
  38,881
  44,134
  49,707
  55,591
  61,781
  68,271
  75,059
  82,144
  89,527
  97,212
  105,204
  113,510
  122,142
  131,110
Net income, $m
  -675
  305
  1,350
  2,804
  4,758
  7,305
  10,531
  14,518
  19,336
  25,042
  31,679
  39,300
  47,869
  57,415
  67,931
  79,401
  91,806
  105,123
  119,326
  134,393
  150,303
  167,038
  184,586
  202,938
  222,094
  242,055
  262,832
  284,440
  306,898
  330,235
  354,482

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,393
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  22,664
  47,559
  73,479
  109,887
  159,441
  224,948
  309,252
  415,107
  545,061
  701,361
  885,876
  1,100,057
  1,344,925
  1,621,087
  1,928,774
  2,267,896
  2,638,107
  3,038,878
  3,469,562
  3,929,459
  4,417,878
  4,934,183
  5,477,834
  6,048,418
  6,645,676
  7,269,516
  7,920,024
  8,597,471
  9,302,312
  10,035,186
  10,796,914
Adjusted assets (=assets-cash), $m
  19,271
  47,559
  73,479
  109,887
  159,441
  224,948
  309,252
  415,107
  545,061
  701,361
  885,876
  1,100,057
  1,344,925
  1,621,087
  1,928,774
  2,267,896
  2,638,107
  3,038,878
  3,469,562
  3,929,459
  4,417,878
  4,934,183
  5,477,834
  6,048,418
  6,645,676
  7,269,516
  7,920,024
  8,597,471
  9,302,312
  10,035,186
  10,796,914
Revenue / Adjusted assets
  0.363
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
  0.722
Average production assets, $m
  4,881
  32,449
  50,134
  74,975
  108,785
  153,480
  210,999
  283,223
  371,890
  478,532
  604,424
  750,558
  917,629
  1,106,052
  1,315,983
  1,547,362
  1,799,954
  2,073,396
  2,367,247
  2,681,031
  3,014,274
  3,366,544
  3,737,471
  4,126,775
  4,534,278
  4,959,918
  5,403,753
  5,865,968
  6,346,874
  6,846,907
  7,366,627
Working capital, $m
  433
  -4,807
  -7,427
  -11,107
  -16,116
  -22,738
  -31,259
  -41,959
  -55,095
  -70,894
  -89,544
  -111,194
  -135,945
  -163,860
  -194,960
  -229,239
  -266,660
  -307,170
  -350,703
  -397,190
  -446,559
  -498,747
  -553,699
  -611,374
  -671,745
  -734,803
  -800,556
  -869,032
  -940,278
  -1,014,357
  -1,091,352
Total debt, $m
  7,128
  27,364
  49,733
  81,153
  123,918
  180,451
  253,205
  344,558
  456,708
  591,595
  750,832
  935,670
  1,146,991
  1,385,319
  1,650,853
  1,943,514
  2,263,007
  2,608,872
  2,980,552
  3,377,444
  3,798,950
  4,244,521
  4,713,691
  5,206,105
  5,721,539
  6,259,913
  6,821,301
  7,405,938
  8,014,216
  8,646,686
  9,304,058
Total liabilities, $m
  17,911
  41,043
  63,412
  94,833
  137,598
  194,130
  266,884
  358,237
  470,388
  605,275
  764,511
  949,349
  1,160,671
  1,398,998
  1,664,532
  1,957,194
  2,276,686
  2,622,552
  2,994,232
  3,391,123
  3,812,629
  4,258,200
  4,727,371
  5,219,785
  5,735,218
  6,273,592
  6,834,981
  7,419,617
  8,027,895
  8,660,366
  9,317,737
Total equity, $m
  4,753
  6,516
  10,067
  15,055
  21,843
  30,818
  42,368
  56,870
  74,673
  96,086
  121,365
  150,708
  184,255
  222,089
  264,242
  310,702
  361,421
  416,326
  475,330
  538,336
  605,249
  675,983
  750,463
  828,633
  910,458
  995,924
  1,085,043
  1,177,854
  1,274,417
  1,374,821
  1,479,177
Total liabilities and equity, $m
  22,664
  47,559
  73,479
  109,888
  159,441
  224,948
  309,252
  415,107
  545,061
  701,361
  885,876
  1,100,057
  1,344,926
  1,621,087
  1,928,774
  2,267,896
  2,638,107
  3,038,878
  3,469,562
  3,929,459
  4,417,878
  4,934,183
  5,477,834
  6,048,418
  6,645,676
  7,269,516
  7,920,024
  8,597,471
  9,302,312
  10,035,187
  10,796,914
Debt-to-equity ratio
  1.500
  4.200
  4.940
  5.390
  5.670
  5.860
  5.980
  6.060
  6.120
  6.160
  6.190
  6.210
  6.230
  6.240
  6.250
  6.260
  6.260
  6.270
  6.270
  6.270
  6.280
  6.280
  6.280
  6.280
  6.280
  6.290
  6.290
  6.290
  6.290
  6.290
  6.290
Adjusted equity ratio
  0.071
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -675
  305
  1,350
  2,804
  4,758
  7,305
  10,531
  14,518
  19,336
  25,042
  31,679
  39,300
  47,869
  57,415
  67,931
  79,401
  91,806
  105,123
  119,326
  134,393
  150,303
  167,038
  184,586
  202,938
  222,094
  242,055
  262,832
  284,440
  306,898
  330,235
  354,482
Depreciation, amort., depletion, $m
  947
  3,040
  4,677
  6,977
  10,108
  14,246
  19,572
  26,259
  34,469
  44,344
  56,000
  69,496
  84,966
  102,412
  121,850
  143,274
  166,662
  191,981
  219,190
  248,244
  279,099
  311,717
  346,062
  382,109
  419,841
  459,252
  500,348
  543,145
  587,674
  633,973
  682,095
Funds from operations, $m
  -818
  3,345
  6,027
  9,781
  14,866
  21,551
  30,103
  40,778
  53,806
  69,386
  87,679
  108,796
  132,835
  159,827
  189,781
  222,676
  258,469
  297,104
  338,515
  382,636
  429,402
  478,755
  530,648
  585,047
  641,934
  701,307
  763,180
  827,585
  894,572
  964,208
  1,036,577
Change in working capital, $m
  -694
  -1,803
  -2,620
  -3,680
  -5,009
  -6,621
  -8,521
  -10,700
  -13,136
  -15,799
  -18,651
  -21,649
  -24,751
  -27,914
  -31,101
  -34,278
  -37,421
  -40,510
  -43,533
  -46,486
  -49,369
  -52,188
  -54,952
  -57,675
  -60,371
  -63,058
  -65,753
  -68,476
  -71,245
  -74,079
  -76,995
Cash from operations, $m
  -124
  5,148
  8,647
  13,461
  19,875
  28,172
  38,625
  51,478
  66,942
  85,185
  106,330
  130,445
  157,586
  187,742
  220,882
  256,954
  295,890
  337,614
  382,049
  429,123
  478,771
  530,943
  585,600
  642,722
  702,305
  764,365
  828,933
  896,061
  965,817
  1,038,287
  1,113,572
Maintenance CAPEX, $m
  0
  -1,878
  -3,005
  -4,642
  -6,942
  -10,073
  -14,211
  -19,537
  -26,224
  -34,434
  -44,308
  -55,965
  -69,496
  -84,966
  -102,412
  -121,850
  -143,274
  -166,662
  -191,981
  -219,190
  -248,244
  -279,099
  -311,717
  -346,062
  -382,109
  -419,841
  -459,252
  -500,348
  -543,145
  -587,674
  -633,973
New CAPEX, $m
  -1,440
  -12,165
  -17,685
  -24,841
  -33,810
  -44,695
  -57,520
  -72,224
  -88,667
  -106,642
  -125,893
  -146,134
  -167,071
  -188,423
  -209,932
  -231,379
  -252,592
  -273,442
  -293,851
  -313,783
  -333,244
  -352,270
  -370,927
  -389,304
  -407,503
  -425,640
  -443,835
  -462,215
  -480,906
  -500,033
  -519,719
Cash from investing activities, $m
  -1,416
  -14,043
  -20,690
  -29,483
  -40,752
  -54,768
  -71,731
  -91,761
  -114,891
  -141,076
  -170,201
  -202,099
  -236,567
  -273,389
  -312,344
  -353,229
  -395,866
  -440,104
  -485,832
  -532,973
  -581,488
  -631,369
  -682,644
  -735,366
  -789,612
  -845,481
  -903,087
  -962,563
  -1,024,051
  -1,087,707
  -1,153,692
Free cash flow, $m
  -1,540
  -8,895
  -12,043
  -16,022
  -20,877
  -26,595
  -33,106
  -40,283
  -47,950
  -55,892
  -63,872
  -71,654
  -78,981
  -85,646
  -91,461
  -96,275
  -99,976
  -102,491
  -103,783
  -103,850
  -102,716
  -100,426
  -97,044
  -92,644
  -87,307
  -81,116
  -74,154
  -66,502
  -58,234
  -49,419
  -40,120
Issuance/(repayment) of debt, $m
  948
  15,393
  22,369
  31,421
  42,765
  56,533
  72,754
  91,353
  112,151
  134,887
  159,236
  184,838
  211,321
  238,328
  265,534
  292,662
  319,493
  345,865
  371,680
  396,892
  421,506
  445,571
  469,170
  492,414
  515,434
  538,374
  561,389
  584,637
  608,278
  632,471
  657,371
Issuance/(repurchase) of shares, $m
  1,866
  2,121
  2,201
  2,184
  2,031
  1,670
  1,018
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,744
  17,514
  24,570
  33,605
  44,796
  58,203
  73,772
  91,353
  112,151
  134,887
  159,236
  184,838
  211,321
  238,328
  265,534
  292,662
  319,493
  345,865
  371,680
  396,892
  421,506
  445,571
  469,170
  492,414
  515,434
  538,374
  561,389
  584,637
  608,278
  632,471
  657,371
Total cash flow (excl. dividends), $m
  2,196
  8,619
  12,527
  17,583
  23,918
  31,607
  40,667
  51,070
  64,201
  78,995
  95,365
  113,185
  132,340
  152,681
  174,072
  196,386
  219,516
  243,374
  267,896
  293,041
  318,790
  345,145
  372,126
  399,770
  428,127
  457,258
  487,235
  518,135
  550,044
  583,051
  617,251
Retained Cash Flow (-), $m
  -3,669
  -2,427
  -3,551
  -4,988
  -6,789
  -8,974
  -11,550
  -14,502
  -17,804
  -21,413
  -25,279
  -29,343
  -33,547
  -37,834
  -42,153
  -46,460
  -50,719
  -54,906
  -59,004
  -63,006
  -66,913
  -70,734
  -74,480
  -78,170
  -81,824
  -85,466
  -89,120
  -92,810
  -96,563
  -100,404
  -104,357
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6,192
  8,976
  12,595
  17,129
  22,633
  29,117
  36,568
  46,398
  57,582
  70,086
  83,842
  98,793
  114,847
  131,919
  149,927
  168,797
  188,469
  208,893
  230,035
  251,877
  274,411
  297,646
  321,600
  346,303
  371,792
  398,115
  425,325
  453,481
  482,648
  512,895
Discount rate, %
 
  7.20
  7.56
  7.94
  8.33
  8.75
  9.19
  9.65
  10.13
  10.64
  11.17
  11.73
  12.31
  12.93
  13.58
  14.26
  14.97
  15.72
  16.50
  17.33
  18.19
  19.10
  20.06
  21.06
  22.11
  23.22
  24.38
  25.60
  26.88
  28.22
  29.64
PV of cash for distribution, $m
 
  5,776
  7,759
  10,015
  12,436
  14,878
  17,182
  19,190
  21,439
  23,183
  24,309
  24,756
  24,519
  23,637
  22,195
  20,311
  18,118
  15,758
  13,362
  11,046
  8,898
  6,982
  5,334
  3,964
  2,864
  2,010
  1,369
  903
  577
  357
  213
Current shareholders' claim on cash, %
  100
  94.9
  91.7
  89.6
  88.4
  87.7
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4
  87.4

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage. The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers. The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market. It develops energy storage products for use in homes, commercial facilities and utility sites.

FINANCIAL RATIOS  of  Tesla, Inc. (TSLA)

Valuation Ratios
P/E Ratio -54.4
Price to Sales 5.2
Price to Book 7.7
Price to Tangible Book
Price to Cash Flow -296.3
Price to Free Cash Flow -23.5
Growth Rates
Sales Growth Rate 73%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -11.9%
Cap. Spend. - 3 Yr. Gr. Rate 40.4%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 125.8%
Total Debt to Equity 150%
Interest Coverage -18
Management Effectiveness
Return On Assets -4.1%
Ret/ On Assets - 3 Yr. Avg. -7.7%
Return On Total Capital -8.6%
Ret/ On T. Cap. - 3 Yr. Avg. -15.3%
Return On Equity -23.1%
Return On Equity - 3 Yr. Avg. -49.8%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 22.8%
Gross Margin - 3 Yr. Avg. 24.4%
EBITDA Margin 3.4%
EBITDA Margin - 3 Yr. Avg. -2.7%
Operating Margin -9.5%
Oper. Margin - 3 Yr. Avg. -11%
Pre-Tax Margin -10.7%
Pre-Tax Margin - 3 Yr. Avg. -13.7%
Net Profit Margin -9.6%
Net Profit Margin - 3 Yr. Avg. -13.6%
Effective Tax Rate -3.6%
Eff/ Tax Rate - 3 Yr. Avg. -2.8%
Payout Ratio 0%

TSLA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TSLA stock intrinsic value calculation we used $21461 million for the last fiscal year's total revenue generated by Tesla, Inc.. The default revenue input number comes from 2016 income statement of Tesla, Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TSLA stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.2%, whose default value for TSLA is calculated based on our internal credit rating of Tesla, Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Tesla, Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TSLA stock the variable cost ratio is equal to 87.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3209 million in the base year in the intrinsic value calculation for TSLA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6% for Tesla, Inc..

Corporate tax rate of 27% is the nominal tax rate for Tesla, Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TSLA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TSLA are equal to 94.5%.

Life of production assets of 10.8 years is the average useful life of capital assets used in Tesla, Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TSLA is equal to -14%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4088.846 million for Tesla, Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 172.712 million for Tesla, Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Tesla, Inc. at the current share price and the inputted number of shares is $39.3 billion.

RELATED COMPANIES Price Int.Val. Rating
F Ford Motor Com 9.34 11.61  buy
GM General Motors 38.78 50.91  buy
HMC Honda Motor Co 25.22 20.68  sell