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.
Comments
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,
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.
Did you see, an analyst has a price target of $711. That's what I'm talking about.
Just the fact that US is considering nvidia chip restrictions explains how important Nvidia is and is going to be in coming years
TSLA up pm after report said TSLA to equip revamped model 3 with CATL’s new battery. TSLA ⬆️
You should buy more. NVDA is soo cheap!!!