Cedric77
2023-06-24

The healthy range of PE ratio for a rising stock like Tesla and Nvidia depends on a number of factors, including the industry, the company's growth prospects, and the overall market conditions. However, as a general rule of thumb, a PE ratio of 20-30 is considered to be healthy for a rising stock.

Tesla's current PE ratio of 73 is slightly above the healthy range, but it is still considered to be reasonable given the company's strong growth prospects. Nvidia's current PE ratio of 196 is much higher than the healthy range, but this is due to the company's dominance in the graphics processing unit (GPU) market.

It is important to note that PE ratio is just one factor to consider when evaluating a stock. Other factors, such as the company's financial health, management team, and competitive landscape, are also important.

Here are some additional factors to consider when evaluating the PE ratio of a rising stock:

• The industry: Some industries, such as technology, tend to have higher PE ratios than others.

• The company's growth prospects: A company with strong growth prospects can justify a higher PE ratio than a company with slower growth.

• The overall market conditions: The PE ratio of the overall market can also affect the PE ratio of individual stocks.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • pixiezz
    2023-06-29
    pixiezz

    I feel sorry for some shortseller but why are you coming Tesla to short, we have a lot of Garbage on Market. Tesla is brand worldwide and USA should proud for Tesla,

  • nimbly
    2023-06-29
    nimbly

    The P/E of a tech stock is discounted because they are tech stocks. The P/E has always been high for them. If you never invested in tech stocks because of high P/E's you missed the boat, the train and the plane.

  • bubblyx
    2023-06-29
    bubblyx

    Did you see, an analyst has a price target of $711. That's what I'm talking about.

  • vippy
    2023-06-29
    vippy

    Just the fact that US is considering nvidia chip restrictions explains how important Nvidia is and is going to be in coming years

  • cheerzy
    2023-06-29
    cheerzy

    TSLA up pm after report said TSLA to equip revamped model 3 with CATL’s new battery. TSLA ⬆️

  • zinglee
    2023-06-29
    zinglee

    You should buy more. NVDA is soo cheap!!!

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