Tesla vs. Salesforce: With Return Forecast Of 48%, Tesla Is A Better Bet
Last Updated: 11/1/2024
We Forecast Higher Stock Return For Tesla vs. Salesforce
Tesla is trading at a more expensive P/S valuation vs. Salesforce and it makes sense to pay more for Tesla for a higher return
TSLA and CRM have similar operating income
3-Year Return Depends On [1] Revenue Growth [2] P/S
[1] How Much Can Revenue Grow In Next 3 Years
We forecast annual revenue growth of 10.3% for TSLA and 11.1% for CRM
[2] Which P/S Scenarios Make Sense
We forecast P/S of 9.4 for TSLA and 7.7 for CRM based on below plausible scenarios
Are Current P/S Ratios Justified
A higher P/S is justified by higher margin, higher revenue growth, better margin expansion, and lower risk
P/S Ratio
Revenue Growth & Operating Margin
Financial & Market Risk
Note On P/S Justification
Past Market Return Comparison vs. Benchmarks
Since 2019, Tesla and Salesforce returned 1083% and 115% respectively vs. 132% for S&P 500 and 520% for Trefis Reinforced Value Portfolio
FAQ
Learn more about the purpose of this analysis
More from Trefis
Tesla and Salesforce Insights
Invest in Market-Beating Trefis Portfolios