MBA ACCY XXXXXXXXXXYear Hoffman
Micro-Case #3
due by 6pm Apr 15, 2021
Name:_______________________________
Tesla!
Most people assume that earnings are a sure road (pun intended in this example…) to a valuable company. But, sometimes, not so much… Please answer the following questions, using Tesla’s 2020 annual report, and Yahoo Finance (for market capitalization):
1. What is Tesla’s Total revenue and Net income/(loss) for the past 3 years?
$millions
2020
2019
2018
Total revenue
Net income (loss)
2. What is Tesla’s Total equity (book value) at Dec 31, 2020, and its Retained earnings/ (deficit)?
$millions
Dec 31, 2020
Total equity
Retained earnings (deficit)
3. What is Tesla’s market capitalization (aka market value)? (It’s OK to use the amount from any day between Apr 8 and Apr 15, XXXXXXXXXXWhat is the MV/BV ratio?
Market capitalization
MV / BV ratio*
* Market Value of equity divided by Book Value of equity. Market Value = market capitalization. Book Value is total equity on the balance sheet, per Question #2 above.
4. Why do you think Tesla can be worth the market capitalization it has, given its reported profitability levels (or lack thereof)? (An answer of one or 2 sentences is sufficient.)