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by bconnorwhite 2002 days ago
Tesla's rise this year is obviously extreme, but it also traded sideways from 2013-2018. Over a decade AMZN is up 25x, TSLA 150x
1 comments

From my perspective, these multiples aren't valuable. Metrics like Price:Sales ratio are,

AMZN's P/S is 4.75, it has climbed sharply, but it has usually hovered between 2 to 3.

https://www.macrotrends.net/stocks/charts/AMZN/amazon/price-...

TSLA's P/S is 25.09. The P/S ration has increased exponentially from a historic low (for the company) of 1.74 to the 25+ territory, https://www.macrotrends.net/stocks/charts/TSLA/tesla/price-s...

You can't really compare the P/S ratios between different industries. A lower margin business like retailing should have a lower P/S ratio than a higher margin business like retailing. OTOH, a crazy high margin business like AWS should have a higher P/S than a manufacturer...