Re:Why Tesla stock is vastly overpriced
by bryanlarsen on Sunday December 20, 2020 @01:44PM
(#25488501)
Toyota, Volkswagen, Mercedes-Benz, Porsche, BMW, Honda, General Motors, Ford, and Nissan combined have almost a trillion dollars worth of debt. So while their market cap is $629B, their value is north of $1.5T.
Think of it like a house. If you pay me $200K for my house plus assume my $300K mortgage, then you say that the value of my house was $500K.
When comparing values of companies, use the "enterprise value" metric, not the "market cap" metric. Enterprise value metrics will still show an overpriced Tesla, just slightly less overpriced.
Think of it like a house. If you pay me $200K for my house plus assume my $300K mortgage, then you say that the value of my house was $500K.
When comparing values of companies, use the "enterprise value" metric, not the "market cap" metric. Enterprise value metrics will still show an overpriced Tesla, just slightly less overpriced.