Tesla valuation thesis

In this thesis, the main reasons and motivations for enabling a valuation process are
disclosed, as well as it is the definition and specification of the different valuation
methods, commonly used for similar companies and sectors, such as the Discounted
Cash Flow, the Multiples and the Price to Earnings Ratio methods. It is important to
take in consideration that the value of the company may change depending on the
method used to evaluate the company. The same way, the different tools needed in
order to understand either the economic situation, the sector insights and performance,
or the company economic and financial information, will be provided during the
development of this thesis.
The determination of the value is a critical factor for the company so it is the main
driver in terms of investment allocation.
The aim of this project is to develop the valuation methodology needed to determine the
value of the company Tesla Motors. The valuation methodology will be based on the
utilization of multiples from the sector and similar companies and the discounted cash
flow, all to determine the final value of the share of the company and make the decision
of either buy, hold or sell.