Tesla stock is trading at its ‘cheapest valuation’ in years, Wedbush’s Dan Ives says

The steep slide in Tesla’s (TSLA) stock price this year is starting to catch the eye of valuation watchers.

“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…

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This article was written by and originally published on finance.yahoo.com