Fair value is the sale price agreed upon by a willing buyer and seller, assuming both parties enter the transaction freely and knowledgeably. Many investments have a fair value determined by a market where the security is traded. However, how does one assess fair value for stock of new sector firms, such as in biotechnology, renewable energy etc., where companies are still not making any positive cash flows? For example, Tesla Inc (TSLA) has an EPS of -5.72, yet its share on April 22 was trading at $ 273.26 per share