Tesla races past $100B in market valuation

Re:Tesla races past $100B in market valuation by bryanlarsen on Wednesday January 22, 2020 @11:51AM (#22119219)

IMO, the best metric for comparison of the two companies is the ratio of Enterprise Value to Sales. (P/S doesn't work as well because of the massive debt loads of car companies).

For VWAGY, the ratio is about 1: $240B of sales and $260B EV. For Tesla, the ratio is about 4.5: $24B of sales and $108B EV.

4.5 is not a massive number for this ratio. It indicates the market expects growth, but not hit-it-out-of-the-park growth.

1 is a relatively small number; the market is expecting Volkswagen to shrink slightly.

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Re:Tesla races past $100B in market valuation by jfengel on Wednesday January 22, 2020 @12:21PM (#22119647)

Sales seems an odd metric, since there's a big difference between high and low margin industries. But I suppose it's somewhat reasonable within an industry, especially when one is trying to compare an established company with one that is so busy growing that nobody expects its profit and loss this quarter to tell you much about the long term. Interesting, thanks.

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