Sign in Sign up for free

Tesla P/FCF

What is the P/FCF of Tesla?

The P/FCF of Tesla, Inc. is 53.98

What is the definition of P/FCF?



Price to free cash flow (P/FCF) is a valuation metric that compares the company’s current share price to its free cash flow per share.

ttm (trailing twelve months)

Price to free cash flow (P/FCF) is a measure that value investors find useful to analyze a company’s finances in relation to its current stock price. It is a stricter measure than the price to cash flow ratio as it subtracts capital expenditures from cash flow.

Free cash flow relies heavily on the state of a company's cash from operations, which is in turn heavily influenced by the company's net income. Companies can manipulate their free cash flow by lengthening the time they take to pay their bills, shortening the time it takes to collect what's owed to them, and putting off buying inventory. It also depends on what items are considered capital expenditures and this can be different in case of different companies.

Lower values of P/FCF generally indicate a company that is undervalued and whose stock is relatively cheap in relation to its free cash flow. Conversely, higher P/FCF indicate that the company's stock is relatively overvalued. Value investors thus favor companies with low or decreasing price to free cash flow values that indicate high or increasing free cash flow totals and relatively low stock share prices.

It is best to compare price to free cash flow ratios between similar companies in the same industry. However, the P/FCF metric can also be viewed over a longer time frame to see if the company's cash flow to share price value is improving or declining.

P/FCF of companies in the Consumer Discretionary sector on XETRA compared to Tesla

What does Tesla do?

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits. It provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; and purchase financing and leasing services. This segment is also involved in the provision of non-warranty after-sales vehicle services, sale of used vehicles, retail merchandise, and vehicle insurance, as well as sale of products through its subsidiaries to third party customers; services for electric vehicles through its company-owned service locations, and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. This segment also offers service and repairs to its energy product customers, including under warranty; and various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Austin, Texas.

Companies with p/fcf similar to Tesla