This dissertation aims to value the intrinsic share price of the electric vehicles and batteries manufacturer Tesla, Inc. The objective is to recommend a buyer or seller position when compared to the current market price. To reach this value, several assumptions must be taken and different ideas and models should be considered. Analysing the current and past literature regarding equity valuation leads to conclude that there is no consensus among authors about the optimal valuation method. Therefore, the Discounted Cash Flow (DCF) model is considered the best model to value the company. The analysis is also complemented by a relative valuation, which confirms the results obtained in the DCF model. This dissertation result is a $322,58 value per share which, when compared to the actual trading value on October 14 i.e. $196,51, leads to a buy recommendation. A comparison with a Robert W. Baird’s report that reaches the valuation of $338 per share is also conducted.
Date of Award | 20 Jul 2017 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | José Carlos Tudela Martins (Supervisor) |
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- Mestrado em Gestão: Programa Internacional
Tesla, Inc. : equity valuation
Almeida, J. R. S. D. (Student). 20 Jul 2017
Student thesis: Master's Thesis