Is Tesla Overvalued? Yes, but the question is by how much!
Read Time: 4 mins In this bull market, everything looks like a golden globe that can save you from all forms of crisis. Although this pandemic started with an extreme bear market where indexes plunged by 40% or more, we are currently in a strong bull market. With no guarantee of this being a bubble driven by tech companies and companies of the future, the market stays volatile where the VIX went to 82.69 as of 16th March 2020. 2020 has been a year of uncertainty filled with crisis, a pandemic, oil wars... Adding on to these uncertainties is the current stock market and the highly valued companies of the future. There is no right way to value a company since valuing a company in long term incurs a lot of variability in terms of the people who are running the company and the environment that supports the company. Keeping these things in mind I have used intrinsic valuation for Tesla using a Discounted Cash Flow (DCF) methodology. Based on optimistic analyses of the company, as I als...