Tesla valuation thesis

Abstract

In this thesis, the main reasons and motivations for enabling a valuation process are disclosed, as well as it is the definition and specification of the different valuation methods, commonly used for similar companies and sectors, such as the Discounted Cash Flow, the Multiples and the Price to Earnings Ratio methods. It is important to take in consideration that the value of the company may change depending on the method used to evaluate the company. The same way, the different tools needed in order to understand either the economic situation, the sector insights and performance, or the company economic and financial information, will be provided during the development of this thesis. The determination of the value is a critical factor for the company so it is the main driver in terms of investment allocation. The aim of this project is to develop the valuation methodology needed to determine the value of the company Tesla Motors. The valuation methodology will be based on the utilization of multiples from the sector and similar companies and the discounted cash flow, all to determine the final value of the share of the company and make the decision of either buy, hold or sell.