How Google Inc (GOOG) and Tesla Motors Inc (TSLA) Are Combining Forces

As for Toyota Motor Corporation (ADR) (NYSE:TM) and Google Inc (NASDAQ:GOOG), typical valuations metrics are fine. Google’s earnings yield is 3.9% while Toyota’s free cash flow yield is 2.4%.  Both of these companies show a P/E higher than some investors would like, but Google’s is actually lower than its industry average. Toyota’s P/E is 20.1 and Google’s is 25.6 (3.3 lower than the industry average). Toyota is the only company that issues dividends and its dividend yield is 0.6%.

The Foolish bottom line

Elon Musk has made his vision clear: Change the world. Tesla Motors Inc (NASDAQ:TSLA) is getting closer and closer to doing that every day. It might not be raking in huge amounts of profit right now, but Musk never claimed it would this early on. His vision is not nearsighted, and investors should keep that in mind. The company is growing very rapidly, and its stock has increased nearly 215% YTD. Google Inc (NASDAQ:GOOG) and Toyota Motor Corporation (ADR) (NYSE:TM) are both solid companies that may not present great value.

The article How Google and Tesla Are Combining Forces originally appeared on Fool.com and is written by Tyler Wofford.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Google and Tesla Motors . The Motley Fool owns shares of Google and Tesla Motors. Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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