The goal is to compute a price for Tesla, Inc. Some information about Tesla. The market price of Tesla is $655. Shares outstanding 959.85 million. Market cap is $628.7 billion. Predicted earnings per share (EPS) = 5.52 Predicted sales are 62.73 billion. Given the number of shares, the predicted sales per share = 65.35 Predicted book value per share = 23.15 This table shows information for the market cap and multiples of other firms in the industry:

	Market cap	Predicted Price to Earnings	Predicted Price to Book (P/B)	Predicted Price to sales (P/S)
Tesla	628.7	160	21	13
GM	8.66	11.4	1.92	0.71
Volkswagen	75.1	4.74	1.08	0.9
Median

Question: Question: What is the average value of Tesla using P/E multiples?

Note: You need to : 1. Compute the medians of the multiples in the table

2. Use these medians to compute the prices, so you will have 3 different prices, one for each multiple.

3. Take the average of these 3 prices. This is the answer.

Multiple Choice

a.$50.5

b.$47.2

c.$49.9

d.$55.4

e.$65.2