Tesla Inc PEG Ratio
Data as of September 29, 2026
PEG Ratio
28.36
PE Ratio (TTM)
386.14
EPS (TTM)
$1.08
Sector
Automobiles
How It's Calculated
28.36 = 386.14 ÷ Growth Rate
What This Means
Tesla Inc's PEG ratio of 28.36 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
About Tesla Inc
Tesla Inc (TSLA) operates in the Automobiles sector, specifically in Automobiles. With a market capitalization of about $1.42T, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $357.45, within a 52-week range of $297.38 to $498.83 (-28.3% from the high, +20.2% from the low). Beta of 1.75 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 3.7%, signaling modest profitability that investors should weigh against growth plans.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Tesla Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Automobiles names on our S&P 100 coverage, Tesla Inc's PEG ratio of 28.36 can be compared with peers such as GM (0.34), F (0.29). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Automobiles stocks.
Key Takeaways
- TSLA is grouped in the Automobiles sector for peer comparisons.
- Recent beta of 1.75 suggests higher-than-market price sensitivity.
- Trailing profit margin of 3.7% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for TSLA.
Learn the full workflow
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Frequently Asked Questions
What is TSLA's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Tesla Inc's PEG of 28.36 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (28.36) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for TSLA?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Automobiles peers — not as a standalone verdict.
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