“Not since 2018 has Tesla traded at these levels,” Wedbush analyst Dan Ives wrote in an email to Yahoo Finance. “On an EV/EBITDA [earnings before interest, taxes, depreciation, and amortization] basis it’s the cheapest valuation to date.”
Ives — a former Tesla bull who made headlines in mid-November for removing the EV maker’s stock from Wedbush’s best ideas list — isn’t too far off on Tesla’s stock being noticeably cheap relative to historical norms.
Tesla’s stock trades on a forward price-to-earnings multiple of 32 times, according to Yahoo Finance data. That’s an almost 70% discount from its historical average multiple. And from a forward EV/EBITDA multiple perspective, Tesla stock is trading at a 53% discount from its historical average.
Shares trade at steep discounts from forward enterprise value to EBIT [earnings before interest and taxes] and enterprise value to…