TSLANEUTRAL

TSLA P/E Ratio Analysis

292.5x

Higher than 100% of Consumer Cyclical sector peers

Updated 105h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 297.6x means investors pay $297.60 for every $1 of Tesla's trailing annual earnings, reflecting a high expected growth premium.

Sector Performance

100th percentile

TSLA

292.5x

Sector Median

27.0x

Sector Avg

36.8x

Prior Period

297.6x(Aug 2026)

↑ Improving

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Deep Analysis

A P/E ratio of 297.6x means investors pay $297.60 for every $1 of Tesla's trailing annual earnings, reflecting a high expected growth premium.

This is far above the sector median of 27.6x, and at the 100th percentile among Consumer Cyclical peers, Tesla is the most expensive stock in its group on this measure. The ratio has been increasing over the last eight quarters, with a year-over-year rise of +12.2% and a quarter-over-quarter rise of +5.5%, moving from 265.3x eight quarters ago to 297.6x now. The combination of an already extreme valuation and continued expansion suggests heightened risk if earnings disappoint, though it also signals strong market conviction in future growth. This metric contradicts the overall NEUTRAL verdict, because a P/E at this level and trend typically warrants a cautious or negative stance rather than a neutral one.

Frequently Asked Questions

What does the P/E Ratio tell investors about TSLA?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does TSLA's P/E Ratio compare to its sector?

TSLA's P/E Ratio of 292.5x compares to a Consumer Cyclical sector median of 27.0x, placing it in the 100th percentile.

Who are TSLA's closest peers by P/E Ratio?

The closest Consumer Cyclical peers by P/E Ratio include: BWA (27.0x), BKNG (27.6x), AMZN (29.0x), AMCR (29.1x), KMX (30.5x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.