Explain the results of the different market multiple ratios

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Reference no: EM132662044

Using the filing data for Tesla Inc. (TSLA) from this link(https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA), calculate the following market multiple ratios for TSLA for FY2019 ending on 31/12/2019:

i. EV/EBITDA

ii. EV/Sales

iii. Price-to-earnings ratio (PE ratio)

iv. Price-to-book ratio

You may take the share price and no. of shares outstanding as on 31/12/2019 for computing the multiples.

Note:

· Take the Close price for the given date as the share price of the stock.

· Take Basic Average Shares from the income statement as the shares outstanding.

v. Further compute the same four multiples for the competitors of TSLA:

a. Ford Motors (F) (https://finance.yahoo.com/quote/F/financials?p=F)

b. General Motors (GM) (https://finance.yahoo.com/quote/GM/financials?p=GM).

vi. Contrast and explain the results of the different market multiple ratios that you calculated for all the three companies. Provide your conclusions on the basis of your observation and knowledge of the market multiples.

Reference no: EM132662044

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