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 (€47.96) is trading above our estimate of fair value (€6.52)

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?

Key metric: As 8GM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8GM. This is calculated by dividing 8GM's market cap by their current earnings.
What is 8GM's PE Ratio?
PE Ratio5.2x
EarningsUS$10.99b
Market CapUS$55.35b

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 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
8GM General Motors
5.2x-10.6%€55.4b

Price-To-Earnings vs Peers: 8GM 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 8GM's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
8GM 5.2xIndustry Avg. 15.2xNo. of Companies15PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8GM 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 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 Ratio5.2x
Fair PE Ratio5.8x

Price-To-Earnings vs Fair Ratio: 8GM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (5.8x).


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€47.96
€56.52
+17.9%
18.2%€80.89€33.31n/a26
Dec ’25€53.56
€55.81
+4.2%
18.9%€80.05€35.79n/a25
Nov ’25€46.67
€54.44
+16.7%
19.4%€78.58€35.13n/a25
Oct ’25€40.07
€49.99
+24.7%
21.7%€76.79€29.81n/a25
Sep ’25€44.95
€50.56
+12.5%
24.9%€87.80€30.46n/a27
Aug ’25€41.20
€53.84
+30.7%
25.0%€90.82€31.51n/a28
Jul ’25€43.18
€53.00
+22.8%
25.9%€89.58€29.86n/a28
Jun ’25€39.71
€51.92
+30.7%
26.2%€89.49€27.97n/a28
May ’25€42.90
€51.72
+20.6%
26.2%€89.79€28.06n/a29
Apr ’25€41.95
€47.83
+14.0%
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€24.83€53.5623
Nov ’24€27.20
€45.41
+66.9%
36.5%€85.18€24.61€46.6723
Oct ’24€31.46
€48.13
+53.0%
31.7%€88.52€30.75€40.0723
Sep ’24€31.00
€47.25
+52.4%
32.0%€87.12€30.26€44.9523
Aug ’24€34.82
€47.05
+35.1%
31.6%€86.50€30.05€41.2023
Jul ’24€35.05
€44.98
+28.3%
32.9%€78.86€27.51€43.1823
Jun ’24€30.24
€45.73
+51.2%
31.5%€80.25€27.99€39.7123
May ’24€29.53
€44.93
+52.1%
31.1%€78.39€27.35€42.9024
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

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


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 17:42
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