Is TSLA Stock Undervalued?

A comprehensive valuation analysis of Tesla Inc (TSLA) examining current multiples, intrinsic value, and comparing to analyst expectations.

Updated February 28, 2026•8 min read•View Full Analysis

Valuation Verdict

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Potentially Undervalued

11310243088.5% upside potential

Based on our analysis, Tesla Inc appears to be potentially undervalued at the current price of $411.82. Our fair value estimate of $46577843498.85 suggests upside potential of approximately 11310243088.5%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing TSLA relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio

394.22

High

P/B Ratio

18.21

High

P/S Ratio

15.77

High

EV/EBITDA

127.83

High

Understanding the Metrics

P/E Ratio: At 394.22x earnings, TSLA is trading above the typical market average of 15-20x.
P/B Ratio: A P/B of 18.21 means investors pay $18.21 for every $1 of book value.
P/S Ratio: The price-to-sales ratio of 15.77 indicates how much investors value each dollar of revenue.
EV/EBITDA: This ratio of 127.83 helps compare TSLA to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Tesla Inc stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price

$411.82

Fair Value Estimate

$46577843498.85

Implied Return+11310243088.5%

Our DCF model suggests TSLA may be undervalued by approximately 11310243088.5%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Historical Valuation Trends

Looking at TSLA's valuation history helps us understand whether the current multiples are typical or unusual for this company.

Current P/E Ratio

394.22

5-Year Average P/E

170.60

Currently above average

TSLA is currently trading at a P/E ratio 131.1% above its 5-year average. This premium valuation could reflect improved growth prospects, but it may also indicate the stock is expensive relative to its historical norms.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price

$411.82

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Analyst Target

$421.73

Implied Upside2.4%

The consensus analyst price target of $421.73 suggests 2.4% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Tesla Inc (TSLA) appears to be undervalued at $411.82. With a fair value estimate of $46577843498.85, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.