Seeing some recent rave reviews about TSLA, ADBE, and FDX lately. Talking about the charging method Tesla uses becoming the standard in North America and being adopted by SAE, Adobe's investments in generative AI, and Fedex being able to pick up some slack if UPS workers go on strike, as well as some other investments and innovations they've been making.
But the problem is, I just don't see them valued at good prices.
FDX is trading at almost 2.5x book and 21x earnings
ADBE is trading at 15x book, almost 47x earnings, and 12x revenue per share
TSLA is trading at almost 17x book, almost 74x earnings, and over 9x revenue per share.
From a valuation standpoint (P/B, P/E, and P/S), those numbers are completely unjustifiable when considering buying.
So is there something I'm missing? Something I'm failing to consider? It seems like in the case of TSLA and ADBE their tech advancements could be a competitive advantage. Or are these types of stocks just wildly overhyped and overpriced? Because from a valuation perspective (P/B, P/E, and P/S) things like DINO, PBR, TSN, NTR, X, HMC, WFG, BIO, and BNTX look like great buys – why wouldn't I just buy those. They seem much more fairly priced, even cheap…
So what am I missing? What else do I need to consider in my analysis, if anything?
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