Tesla, the most valuable auto maker is now more valuable than the bottom 492 companies in the S&P 500 – without being a member of the S&P 500 index.
At its intraday peak of $2,021.99 on Thursday, Tesla sported a valuation of more than $378 billion, above Walmart’s market capitalization of $368 billion, according to Business Insider
Following the announcement on 11 August that, it would implement a 5-for-1 stock split later in the month, the electric-vehicle manufacturer’s share price has soared over 45%.
In July Tesla beat analyst’s revenue estimate for the second quarter of 2020 and also posted a profit for a fourth straight quarter and became eligible to be included in the S&P 500 index. Year-to-date, Tesla has surged 378%.
The soaring share price of Tesla has made its CEO Elon Musk the fourth richest man in the world.
Walmart has superior financial profile compared to that of Tesla, thus the relative valuation of Tesla to Walmart exacerbates the over valuation of some companies on Wall Street.
In its latest fiscal year, Walmart recorded $500 billion more in revenue than Tesla.
As of Thursday, Tesla featured a price-earnings multiple of 1,030x.
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Listed below are the eight remaining S&P 500 companies worth more than Tesla after it surpassed Walmart
- Johnson & Johnson; Ticker: JNJ – Market cap: $398 billion
- Visa; Ticker: V – Market cap: $432 billion
- Berkshire Hathaway; Ticker: BRK.A/BRK.B – Market cap: $492 billion
- Facebook; Ticker: FB – Market cap: $762 billion
- Alphabet; Ticker: GOOGL/GOOG – Market cap: $1.07 trillion
- Microsoft; Ticker: MSFT – Market cap: $1.61 trillion
2. Ticker: AMZN – Market cap: $1.65 trillion
- Apple – Ticker: AAPL – Market cap: $2.03 trillion