Tesla Inc. (TSLA) has received a strong rating from Validea’s guru fundamental report, utilizing the P/B Growth Investor model developed by Partha Mohanram. This model evaluates low book-to-market stocks that show signs of potential long-term growth. In the Auto & Truck Manufacturers industry, Tesla is classified as a large-cap growth stock and boasts a rating of 77% based on its fundamental performance and valuation metrics. A score of 80% or higher typically indicates a noteworthy interest in the stock, while scores above 90% signify robust interest.
The assessment includes a breakdown of Tesla’s performance against the model’s criteria. Notably, the company passed several key tests:
– Book/Market Ratio: Pass
– Return on Assets: Pass
– Cash Flow from Operations to Assets: Pass
– Cash Flow from Operations to Assets vs. Return on Assets: Pass
– Return on Assets Variance: Pass
– Sales Variance: Pass
However, it did not meet expectations in two areas:
– Advertising to Assets: Fail
– Research and Development to Assets: Fail
Partha Mohanram’s work has influenced the investment community, illustrating how academic research can reshape investment strategies. He is a recognized figure in the field, currently serving as the John H. Watson Chair in Value Investing at the University of Toronto. His research highlights the factors that help distinguish successful growth stocks from those that may decline.
Validea specializes in investment research, following strategies from renowned investment figures, including Warren Buffett and Benjamin Graham, among others. The insights provided serve to aid investors in selecting stocks that have a history of outperforming the market over time.