Benzinga Insights, Benzinga Staff Writer September 30, 2024 11:00 AM | 4 min read When analyzing Tesla, the following trends become evident: The Price to Earnings ratio of 73.16 for this company is 5.59x above the industry average, indicating a premium valuation associated with the stock. With a Price to Book ratio of 12.52, which is 10.02x the industry average, Tesla might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers. The stock's relatively high Price to Sales ratio of 9.54, surpassing the industry average by 15.9x, may indicate an aspect of overvaluation in terms of sales performance. The Return on Equity (ROE) of 2.26% is 0.23% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits. Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.25 Billion, which is 0.01x below the industry average, potentially indicating lower profitability or financial challenges. With lower gross profit of $4.58 Billion, which indicates 0.01x below the industry average, the company may experience lower revenue after accounting for production costs. The company's revenue growth of 2.3% is significantly below the industry average of 4.18%. This suggests a potential struggle in generating increased sales volume. Debt To Equity Ratio The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity. Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making. When comparing Tesla with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed: Among its top 4 peers, Tesla has a stronger financial position with a lower debt-to-equity ratio of 0.19. This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors. Key Takeaways For Tesla, the PE, PB, and PS ratios are all high compared to its industry peers, indicating that the stock may be overvalued based on these metrics. In terms of ROE, EBITDA, gross profit, and revenue growth, Tesla lags behind its competitors, suggesting lower profitability and growth potential relative to industry standards. This article was generated by Benzinga's automated content engine and reviewed by an editor.