Tesla, Inc.
: equity valuation

  • João Ricardo Sardinha de Almeida (Student)

Student thesis: Master's Thesis

Abstract

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 Award20 Jul 2017
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)

Designation

  • Mestrado em Gestão: Programa Internacional

Cite this

'