Valuation of Tesla, Inc
Thesis title: | Valuation of Tesla, Inc |
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Author: | Schüller, Christoph Markus |
Thesis type: | Diploma thesis |
Supervisor: | Krabec, Tomáš |
Opponents: | Jeřábková, Silvie |
Thesis language: | English |
Abstract: | Valuation is the process of determining the intrinsic value of any asset. However, for companies that are considered to be rather young, in a period of growth, highly complex in its business model or under financial distress, among others, this process turns out to be rather difficult and not very precise in its outcomes. Tesla is one of those companies showing characteristics of a strongly growing, complex business which is currently also undergoing financial difficulties. This thesis investigates possible ways of approaching these matters and aims to set a valuation framework which provides an adequate and reasonable path of valuing those businesses. Therefore theoretical background and extensive information about business model and market trends was gathered to set the fundament for the practical valuation approach of the company. The thesis applies a discounted cash flow valuation based on free cash flows to the firm in order to retrieve Tesla’s intrinsic value. The findings of the thesis allow conclusions about Tesla’s business model, competitive position in the market and consequently the reasonability of Tesla’s current share price. For companies considered to be rather similar in their characteristics, this thesis provides a valuation framework which can be applied to retrieve a first impression of those companies’ intrinsic value. |
Keywords: | Multiples; Elon Musk; DCF-model; Valuation; Tesla; Personal Brand Value |
Thesis title: | Valuation of Tesla, Inc |
---|---|
Author: | Schüller, Christoph Markus |
Thesis type: | Diplomová práce |
Supervisor: | Krabec, Tomáš |
Opponents: | Jeřábková, Silvie |
Thesis language: | English |
Abstract: | Valuation is the process of determining the intrinsic value of any asset. However, for companies that are considered to be rather young, in a period of growth, highly complex in its business model or under financial distress, among others, this process turns out to be rather difficult and not very precise in its outcomes. Tesla is one of those companies showing characteristics of a strongly growing, complex business which is currently also undergoing financial difficulties. This thesis investigates possible ways of approaching these matters and aims to set a valuation framework which provides an adequate and reasonable path of valuing those businesses. Therefore theoretical background and extensive information about business model and market trends was gathered to set the fundament for the practical valuation approach of the company. The thesis applies a discounted cash flow valuation based on free cash flows to the firm in order to retrieve Tesla’s intrinsic value. The findings of the thesis allow conclusions about Tesla’s business model, competitive position in the market and consequently the reasonability of Tesla’s current share price. For companies considered to be rather similar in their characteristics, this thesis provides a valuation framework which can be applied to retrieve a first impression of those companies’ intrinsic value. |
Keywords: | Personal Brand Value; DCF-Model; Valuation |
Information about study
Study programme: | Finance and Accounting |
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Type of study programme: | Magisterský studijní program |
Assigned degree: | Ing. |
Institutions assigning academic degree: | Vysoká škola ekonomická v Praze |
Faculty: | Faculty of Finance and Accounting |
Department: | Department of Corporate Finance |
Information on submission and defense
Date of assignment: | 12. 9. 2017 |
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Date of submission: | 29. 5. 2018 |
Date of defense: | 13. 6. 2018 |
Identifier in the InSIS system: | https://insis.vse.cz/zp/62837/podrobnosti |