NKLA Stock Forecast Implies it will Underperform through 2025

My NKLA Stock Forecast for 2025 is $4.65 Per Share

My Nikola prediction of $4.65 was a result of undergoing 2 main valuation approaches in order to reach a final price target (average of 2 methods). These 2 methods include:

  1. NKLA Financial Ratios
  2. NKLA Comparable Companies

Forecasting the NKLA Stock for 2025 Using Forward Ratios

NKLA’s forward Earnings Per Share for 2025 are estimated to reach -1.03 by 2025. Additionally, Nikola’s forward Price to Earnings is also said to reach 5.75 come 2025. By multiplying NKLA’s forward P/E and EPS, we can arrive at an NKLA stock forecast for 2025, which in this case is $5.92 per share.

This is a very simplistic price target, but PE and EPS are commonly used by analysts and investors, so this method should yield a decent result.

Comparable Company Analysis: NKLA Stock Forecast for 2025

What are Some Stocks Similar to NKLA?

NKLA’s competitors each need to exhibit; a stock, financial ratios, similar operations to Nikola, and a market cap similar to NKLA.

Taking this into consideration narrows down the list to the following tickers:

FTDR, RRR, LGIH, SFIX, GT, WING, DRVN, SLGN, EYE, WEN

NKLA Price Forecast from Comparable

NKLA’s P/S ratio is currently 171.01, compared to the average P/S ratio of NKLA’s peers being 1.32. This implies that NKLA is heavily overvalued and should decrease by -99.23% to reach fair value.

NKLA’s current P/B ratio is 5.71, compared to the average of NKLA’s peers being 4.74. This implies that NKLA is overvalued and its share price should change by a factor of -17.11% to be at fair value.

it is easy to see that the NKLA stock is overvalued, however, we can conclude that its stock should drop by (an average of) -58.17% to be considered “at fair value”. Given NKLA’s current stock price of $8.05, my forecasted stock price for NKLA in 2025 would then be $3.37 per share.

NKLA Analyst Coverage

7 Buys

13 Holds

1 Sells

33.33% of NKLA stock analysts have given them a ‘buy” rating. This helps the overall NLKA analyst sentiment to become slightly bullish (more “buys” than “sells”, but with the majority being “holds”).

NKLA Stock Forecast and Conclusion

Based on my NKLA price target for 2025 of $4.65 per share, and the fact that current price of NKLA is $8.05. I would take an opposing stance from the analysts and say that the NKLA stock is a “sell” and will underperform through 2025.

Let me know what you think, happy to dive into other aspects of NKLA to help you make an informed investment decision.

Originally published at https://utradea.com.

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