Tesla Motors, Inc. (NASDAQ:TSLA) kept active in under and overvalue discussion, TSLA holds price to book ratio of 11.78 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Fundament/ News Factor in Focus
Tesla Motors plans to rise additional cash this year to help it fund development and production of its new Model 3 sedan and build out its giant battery factory, the firm stated in a filing on Wednesday. The electric carmaker stated it planned to raise money through either equity or debt offering, in a registration statement filed with the U.S. Securities and Exchange Commission. Tesla Chief Executive Elon Musk before had warned that the firm might need “a small equity capital raise” in 2017.
Taking look on ratio analysis, TSLA has forward price to earnings ratio of 124.05. The co is presenting price to cash flow as 9.75 and the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower. The firm has price volatility of 2.06% for a week and 1.95% for a month. Its beta stands at 1.25 times. Narrow down four to firm performance, its weekly performance was -4.77% and monthly performance was -6.69%.
BorgWarner Inc. (NYSE:BWA) runs in leading trade, it inching up 0.17% to traded at $34.39. BWA attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of 1.57%.
To find out the technical position of BWA, it holds price to book ratio of 2.01 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 9.66, and price to earnings ratio calculated as 12.42. The price to earnings growth ration calculated as 1.18. BWA is presenting price to cash flow of 14.94 and free cash flow concluded as 27.43.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -5.70%, and looking further price to next year’s EPS is 9.44%. While take a short look on price to sales ratio, that was 0.86 and price to earning ration of 12.42 attracting passive investors.