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Tesla Motors - Evaluating a Growth Company - Case Study Example

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Calculating the current market value from these figures gives Tesla’s market value as being around $31.35B. This shows a slight deviation from the above figure of $31.45B, but the two figures are still…
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Tesla Motors - Evaluating a Growth Company
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Tesla Motors. Task: Question 5 Tesla Motors Enterprise Value. Enterprise Value (EV) = Market Capitalization + Total Debt – Cash.
valuation measures
figures
market capitalization
$35.45B
total debts
$2.58B
Cash
$263M
EV = $35.45B + $2.5B - $263M
= $31.45B
Question 6.
Tesla Motors.
Comparison between calculated valuation and share valuation.
Tesla possesses around 126.4 million shares each valued at around $248. Calculating the current market value from these figures gives Tesla’s market value as being around $31.35B. This shows a slight deviation from the above figure of $31.45B, but the two figures are still relatable. Therefore, it can be concluded that there is a reasonable level of correlation between the market value figure obtained from per share valuation and that which results from the enterprise value valuation. This idealization is based on the fact that the slight difference can be attributed to the arithmetic misappropriations that result from dealing with such huge financial figures and the dynamism associated with the value of a company’s shares (Kurtz and Boon 2011, 167).
References.
Kurtz, D. & Boone, L. (2011). Contemporary Business. New Jersey, NJ: John Wiley & Sons. Read More
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