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You would like to evaluate TSLA's stock. You find out the following about TSLA needed to do so: (1) Their CAPM beta is 1.6. (2)

You would like to evaluate TSLA's stock. You find out the following about TSLA needed to do so:

(1) Their CAPM beta is 1.6.

(2) The weighted-average YTM on TSLA's bonds is 4%.

(3) Tesla's effective tax-rate is 25%.

(4) TSLA's capital structure mix is 96% equity and only 4% debt. TSLA has 932 million shares outstanding.

(5) The risk-free rate is currently .5% and the market risk-premium is 6%.

(6) Below are TSLA's expected OCFs (operating cash flows) for the next 5 years:

Year 1: $2,400,000,000

Year 2: $3,000,000,000

Year 3: $3,700,000,000

Year 4: $4,600,000,000

Year 5: $5,900,000,000

After year 5, TSLA is expected to grow its OCFs at a very impressive 6% per annum, indefinitely. Tesla is currently trading at $425 a share.

What is TSLA's fair stock price per share, given the above assumptions?

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