By: Dividend Sensei
Tesla is one of the fastest-growing companies on earth, with a 37% CAGR growth consensus and Cathie Wood at ARK forecasting growth as high as 86% CAGR.
ARK’s latest TSLA valuation model says that TSLA has a 75% chance of hitting $3,000 to $4,000 by 2025. That’s 40% to 50% CAGR returns from here.
A careful analysis of ARK’s model shows forecasts that are 300% to 700% more optimistic than the 42 analyst consensus. Tesla is 50% overvalued and worth about $436 today.
Today, Tesla’s hyper-growth equates to 10% CAGR analyst return expectations over the next five years, and just 6.2% on a risk-adjusted basis.
In contrast, these three hyper-growth blue-chips that DK and I have been buying recently are 18% to 31% undervalued. Their potent combination of yield, growth, value, and quality offers 172% to 400% five-year consensus return potentials. In other words, a reasonable possibility to triple your money (or better) in the next five years.