General Motors Valuation

Is 8GM 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 8GM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8GM (€42.32) is trading above our estimate of fair value (€18.64)

Significantly Below Fair Value: 8GM is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8GM?

Other financial metrics that can be useful for relative valuation.

8GM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA9.5x
PEG Ratio-1.2x

Price to Earnings Ratio vs Peers

How does 8GM's PE Ratio compare to its peers?

The above table shows the PE ratio for 8GM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.2x
VOW3 Volkswagen
3.8x3.3%€65.9b
BMW Bayerische Motoren Werke
6x-0.7%€67.0b
P911 Dr. Ing. h.c. F. Porsche
17.5x9.4%€81.8b
MBG Mercedes-Benz Group
5.4x-3.7%€76.9b
8GM General Motors
4.9x-4.0%€52.3b

Price-To-Earnings vs Peers: 8GM is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (8.2x).


Price to Earnings Ratio vs Industry

How does 8GM's PE Ratio compare vs other companies in the Global Auto Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 8GM is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Global Auto industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is 8GM'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.

8GM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ratio6x

Price-To-Earnings vs Fair Ratio: 8GM is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (6x).


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 8GM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€42.32
€51.18
+20.9%
27.0%€89.74€28.04n/a29
Apr ’25€41.95
€47.77
+13.9%
30.2%€87.65€25.83n/a28
Mar ’25€37.88
€48.08
+27.0%
30.9%€87.67€25.84n/a26
Feb ’25€36.17
€45.48
+25.7%
30.5%€87.40€25.76n/a26
Jan ’25€32.65
€44.15
+35.2%
37.4%€87.32€24.82n/a24
Dec ’24€29.13
€43.91
+50.8%
38.7%€87.35€24.83n/a23
Nov ’24€27.20
€45.41
+66.9%
36.5%€85.18€24.61n/a23
Oct ’24€31.46
€48.13
+53.0%
31.7%€88.52€30.75n/a23
Sep ’24€31.00
€47.25
+52.4%
32.0%€87.12€30.26n/a23
Aug ’24€34.82
€47.05
+35.1%
31.6%€86.50€30.05n/a23
Jul ’24€35.05
€44.98
+28.3%
32.9%€78.86€27.51n/a23
Jun ’24€30.24
€45.73
+51.2%
31.5%€80.25€27.99n/a23
May ’24€29.53
€44.93
+52.1%
31.1%€78.39€27.35n/a24
Apr ’24€32.97
€46.21
+40.2%
30.3%€79.34€27.68€41.9523
Mar ’24€36.40
€47.06
+29.3%
31.6%€80.07€27.93€37.8822
Feb ’24€36.12
€45.45
+25.8%
31.8%€78.29€27.31€36.1721
Jan ’24€31.51
€49.76
+58.0%
34.6%€87.86€29.29€32.6521
Dec ’23€38.69
€49.76
+28.6%
34.6%€87.86€29.29€29.1321
Nov ’23€39.68
€50.70
+27.8%
33.7%€90.32€30.11€27.2022
Oct ’23€33.83
€54.01
+59.7%
31.1%€92.45€29.79€31.4622
Sep ’23€37.75
€52.65
+39.5%
33.6%€94.64€28.89€31.0022
Aug ’23€35.14
€51.58
+46.8%
33.6%€92.63€28.28€34.8222
Jul ’23€30.01
€56.20
+87.3%
27.7%€89.98€31.26€35.0524
Jun ’23€36.27
€57.65
+59.0%
26.8%€91.31€30.75€30.2424
May ’23€36.67
€60.51
+65.0%
23.0%€92.92€37.93€29.5322
Apr ’23€39.58
€64.99
+64.2%
18.9%€90.39€39.77€32.9721

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


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