General Motors Valuation

Is GM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GM (CHF40) is trading above our estimate of fair value (CHF5.44)

Significantly Below Fair Value: GM is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for GM?

Key metric: As GM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GM. This is calculated by dividing GM's market cap by their current earnings.
What is GM's PE Ratio?
PE Ratio5.2x
EarningsUS$10.99b
Market CapUS$55.35b

Price to Earnings Ratio vs Peers

How does GM's PE Ratio compare to its peers?

The above table shows the PE ratio for GM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.9x
BMW Bayerische Motoren Werke
6x3.3%€48.3b
P911 Dr. Ing. h.c. F. Porsche
13.4x11.3%€53.4b
MBG Mercedes-Benz Group
4.7x1.0%€50.8b
VOW3 Volkswagen
3.6x9.2%€45.1b
GM General Motors
5.2x-10.6%CHF 55.4b

Price-To-Earnings vs Peers: GM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (6.9x).


Price to Earnings Ratio vs Industry

How does GM's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GM 5.2xIndustry Avg. 15.2xNo. of Companies15PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the Global Auto industry average (15.6x).


Price to Earnings Ratio vs Fair Ratio

What is GM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio8.1x

Price-To-Earnings vs Fair Ratio: GM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (8.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 40.00
CHF 53.12
+32.8%
18.2%CHF 76.01CHF 31.30n/a26
Dec ’25CHF 40.00
CHF 52.26
+30.7%
18.9%CHF 74.97CHF 33.52n/a25
Nov ’25CHF 40.00
CHF 50.93
+27.3%
19.4%CHF 73.52CHF 32.87n/a25
Oct ’25CHF 40.00
CHF 46.82
+17.1%
21.7%CHF 71.93CHF 27.93n/a25
Sep ’25CHF 40.00
CHF 47.83
+19.6%
24.9%CHF 83.06CHF 28.82n/a27
Aug ’25CHF 40.00
CHF 50.76
+26.9%
25.0%CHF 85.61CHF 29.70n/a28
Jul ’25CHF 40.00
CHF 50.81
+27.0%
25.9%CHF 85.87CHF 28.62n/a28
Jun ’25CHF 40.00
CHF 50.70
+26.7%
26.2%CHF 87.38CHF 27.31n/a28
May ’25CHF 40.00
CHF 50.82
+27.1%
26.2%CHF 88.24CHF 27.57n/a29
Apr ’25CHF 40.00
CHF 46.62
+16.5%
30.2%CHF 85.42CHF 25.18n/a28
Mar ’25CHF 40.00
CHF 45.78
+14.5%
30.9%CHF 83.47CHF 24.60n/a26
Feb ’25CHF 40.00
CHF 42.40
+6.0%
30.5%CHF 81.48CHF 24.02n/a26
Jan ’25CHF 40.00
CHF 41.86
+4.6%
37.4%CHF 82.79CHF 23.53n/a24
Dec ’24CHF 40.00
CHF 41.52
+3.8%
38.7%CHF 82.59CHF 23.47CHF 40.0023
Nov ’24CHF 40.00
CHF 43.26
+8.1%
36.5%CHF 81.15CHF 23.44CHF 40.0023
Oct ’24CHF 40.00
CHF 46.14
+15.4%
31.7%CHF 84.86CHF 29.48CHF 40.0023
Sep ’24CHF 40.00
CHF 45.27
+13.2%
32.0%CHF 83.47CHF 28.99CHF 40.0023
Aug ’24CHF 40.00
CHF 45.22
+13.1%
31.6%CHF 83.15CHF 28.88CHF 40.0023
Jul ’24CHF 40.00
CHF 43.92
+9.8%
32.9%CHF 77.01CHF 26.86CHF 40.0023
Jun ’24CHF 40.00
CHF 44.40
+11.0%
31.5%CHF 77.93CHF 27.18CHF 40.0023
May ’24CHF 40.00
CHF 44.18
+10.4%
31.1%CHF 77.07CHF 26.89CHF 40.0024
Apr ’24CHF 40.00
CHF 46.02
+15.1%
30.3%CHF 79.03CHF 27.57CHF 40.0023
Mar ’24CHF 40.00
CHF 46.58
+16.5%
31.6%CHF 79.26CHF 27.65CHF 40.0022
Feb ’24CHF 40.00
CHF 45.37
+13.4%
31.8%CHF 78.15CHF 27.26CHF 40.0021
Jan ’24CHF 40.00
CHF 48.89
+22.2%
34.6%CHF 86.31CHF 28.77CHF 40.0021
Dec ’23CHF 40.00
CHF 48.89
+22.2%
34.6%CHF 86.31CHF 28.77CHF 40.0021

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 16:00
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

General Motors Company is covered by 62 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
Ishan MajumdarBaptista Research
Brian JohnsonBarclays