My company is Tesla. The best Valuation Method is the residual income
valuation model. The purpose of the residual income valuation model is
to find out if the company's decision is going to create more profit for
the investors or not. Because the company type for Tesla is a
technology and automobile manufacturer company. Most investment
decisions or plans will take a few years to come true. With the residual
income valuation model, investors can find out if the decision or plan is
going to make more profit in the future or not. Also, Tesla has a lot of
new technologies that other companies do not have. It can help Tesla
create a technology barrier. Tesla can use his new technologies and
products to create more profit in the future. If one day, Tesla can not
create new products or technologies, the residual income will be lower.
Investors can notice it, and hold their money until a better investment
plan.
