Tesla (TSLA) in Limbo as Sentiment Goes Flat

Is another slight drop in Tesla stock expected?

Valuentum said Thursday that th recent drop in Tesla (Nasdaq: TSLA) shares -- over 30 percent since the end of September -- makes the stock fairly valued. Using a five-year revenue CAGR at 67.6 percent (Tesla's trailing three-year CAGR is about 26.5 percent), discount rate of 10.7 percent, EBITDA margin at 10.7 percent, and more, the company sees Tesla with market value of about $13.7 billion.

With Tesla having just 107.3 million shares outstanding, the average price on Tesla is at $128. Shares would be attractive at $96 and expensive at $160, Valuentum noted.

It appears that Valuentum sees more downside than upside in Tesla stock.

We also note that Tesla's forward P/E is about 277, versus 11.1 times for Ford (NYSE: F), 10.3 times at GM (NYSE: GM), and 10.8 times at Toyota (NYSE: TM).

Of course, Tesla's viability goes beyond just selling cars; the company currently has a slew of battery licensing deals and will likely strike more on the future if its technology stays ahead of the pack.

For right now, though, we'd have to agree with Valuentum: Telsa may stay put for at least a little while.

Shares are about flat on Friday's session.

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