The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings, and is a commonly used statistic for stock evaluation. Many of the major automakers, save for Toyota, are projected to have stable P/E ratios over the next three years. Ford has a current ratio of 6.9, General Motors with a 6.08, and Fiat Chrysler with a 5.22. Each of these companies are projected to maintain these numbers within a relatively small margin between now and 2018. Toyota is more interesting, however, as in 2019 their ratio is projected to fall off a cliff from an estimated 7.89 in 2018 to 0.10. Yet even with this sharp shift, all these established automakers have a positive P/E ratio primarily ranging between 5 and 7.
Tesla is a major outlier in the industry in terms of P/E (shown on the right), which has become normal for the electric car maker. In 2015 their price-to-earnings ratio was -54.24, and is estimated to bottom out at -141.69. These numbers are shockingly low, but even more surprising is the projected number for 2018, a positive 59.17. I suppose this massive number may be enough to entice investors to weather the storm for the next few years as Tesla ramps up production for the new Model 3 and attempts to produce a profitable quarter for the first time without the selling of government carbon credits. If Tesla is able to achieve a ratio of anywhere near 59.17, it will be a full magnitude higher than any of their competitors.