Investors who refuse to compare valuation vs price are doomed to overpay for great companies like $TSLA. Count how many posters on X actually post how they come up with a value for TSLA to compare to the price to determine if the stock worth buying. My valuation is 2030 EPS of $7.75 x a P/E that reflects 35% long term earnings growth (CAGR) at a megacap avg 2x PEG, discounted back at a 14.8% risk-adjusted cost of equity (4.6% 10-yrTY, 6% ERP, 1.7x beta):
Fair value: $7.75 x 70x / (1.148)^4 = $312.
Buy price: $312 x 80% =$250.
As my followers know, my discipline is to buy stocks at a 20% discount to their fair market value to get enough upside vs other stocks in my universe.
Too many investors on X fall in love with a company’s products, strategy, and management. That doesn’t mean you should fall in love with the stock. Value is what you get. Price is what you pay.