Auto - Manufacturers · NASDAQ
Current Price
$372.80
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Tesla, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. It operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
ROIC (TTM)
3.2%
ROE (TTM)
4.8%
FCF Yield
0.50%
Based on trailing twelve-month data, TSLA shows a free cash flow per share of N/A and a ROIC of 3.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 0.50% are important context metrics when evaluating TSLA's stock valuation relative to peers.
The intrinsic value of TSLA depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether TSLA is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $372.80. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Tesla, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Auto - Manufacturers industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TSLA's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Tesla, Inc., this means projecting how much free cash flow the Auto - Manufacturers will produce over the next 5-10 years, then discounting those amounts to today's dollars. TSLA's ROIC of 3.2% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TSLA, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
