Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles; and Lincoln luxury vehicles worldwide. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$3,245.78||$3,680.93||$4,895.00||$5,000.04||$5,107.33|
|Source||Analyst x6||Analyst x4||Analyst x1||Extrapolated @ (2.15%)||Extrapolated @ (2.15%)|
Discounted (@ 17.53%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $5,107 × (1 + 2.47%) ÷ (17.53% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$28,836 = $13,339 + $15,496
Value = Total value / Shares Outstanding ($28,836 / 3,973)Discount to Share Price
Value per share:
Current discount (share price of $10.7): -47.44%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 17.53% = 2.47% + (2 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($42,236,728,103).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
2.097 = 0.657 (1 + (1- 40%) (365.29%))
Levered Beta used in calculation = 2
Mr. James Patrick Hackett, also known as Jim, has been Chief Executive Officer and President of Ford Motor Company since May 22, 2017. Mr. Hackett served as the Chief Executive Officer of Steelcase Inc. from 1994 to March, 2014 and served as its President from 1994 to April 22, 2013. He served as Chairman of Ford Smart Mobility LLC at Ford Motor Company from March 2016 to May 22, 2017. Mr. Hackett served as Vice Chairman of Steelcase Inc. until February 27, 2015. He served as the Chairman of Fifth Third BanCorp. and served as its Director at Fifth Third BanCorp since 2001 until April 19, 2016. He has been a Director of Fifth Third bank since 2001 and served as its Lead Director from June 2008 to April 15, 2014. Mr. Hackett serves as a Director of Business Leaders for Michigan. He has been a Trustee of Northwestern Mutual Life Insurance Company, of NML Variable Annuity Account A since 2000. He serves as a Director of Fifth Third Bank. He served as a Director of Ford Motor Company since September 2013 until March 10, 2016. He served as a Director of Steelcase Inc. since 1994 to February 27, 2015. Mr. Hackett served as a Director of Old Kent Financial Corp. since 1995. He is a University of Michigan graduate.
Average tenure and age of the Ford Motor management team in years:
Average tenure and age of the Ford Motor board of directors in years:
See our latest analysis for Ford Motor How F fared against its long-term earnings performance and its industry I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Since these values may be relatively nearsighted, I’ve created an annualized five-year value for F's earnings, which stands at US$7.65B This suggests that, while earnings growth from last year was positive, over the longer term, Ford Motor's earnings have been declining on average. … Ford Motor's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.Simply Wall St - – Full article
Looking at Ford Motor Company's (NYSE:F) earnings update in December 2017, it seems that analyst forecasts are fairly pessimistic, as a -16.93% fall in profits is expected in the upcoming year. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:F Future Profit Feb 5th 18 From the current net income level of $7,602.0M and the final forecast of $6,502.5M by 2021, the annual rate of growth for F’s earnings is -2.66%.Simply Wall St - – Full article
By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for F Price per share = $12.05 Earnings per share = $1.109 ∴ Price-Earnings Ratio = $12.05 ÷ $1.109 = 10.9x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with F, then F’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price.Simply Wall St - – Full article
I find that Ford Motor’s ratio of 10.78x is trading slightly below its industry peers’ ratio of 12.9x, which means if you buy Ford Motor today, you’d be paying a fair price for it. … And if you believe Ford Motor should be trading in this range, then there isn’t much room for the share price grow beyond what it’s currently trading. … If you’ve been keeping an eye on Ford Motor, now may not be the most advantageous time to buy, given it is trading around its fair value.Simply Wall St - – Full article
Margin Calculation for F Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 4.41 Billion ÷ 154.10 Billion = 2.86% Ford Motor's margin has contracted in the past five years, with 2.66% in average revenue growth and decline in net income of -17.66% on average, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … It is expected that margins will shift towards expansion, with an expectation of -0.0025% in annual net income growth and revenue forecasted to decline annually at 1.23%. … This is causing positive net income growth while revenue is forecasted to decline, which is causing the expectation for margins to expand.Simply Wall St - – Full article
Growth expectations for Ford Motor Company (NYSE:F) are high, but many investors are starting to ask whether its last close at $13.23 can still be rationalized by the future potential. … But, since Ford Motor is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … PE ratio of 11.93x and predicted 46.03% growth in earnings next year give Ford Motor a punchy PEG ratio of 6.56x.Simply Wall St - – Full article
View our latest analysis for Ford Motor What you must know about ROE Return on Equity (ROE) weighs Ford Motor’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Ford Motor’s equity capital deployed. … Since Ford Motor’s return does not cover its cost, with a difference of -3.88%, this means its current use of equity is not efficient and not sustainable.Simply Wall St - – Full article
Below, I've laid out key numbers on how market analysts predict Ford Motor's earnings growth outlook over the next couple of years and whether the future looks brighter. … See our latest analysis for Ford Motor Market analysts' consensus outlook for the upcoming year seems positive, with earnings expanding by a robust 43.98%. … NYSE:F Future Profit Dec 24th 17 While it’s helpful to be aware of the growth each year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are moving every year, on average.Simply Wall St - – Full article
After looking at Ford Motor Company's (NYSE:F) latest earnings announcement (30 September 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Ford Motor's latest twelve-month earnings is $4,410M, which, in comparison to the prior year's figure, has taken a dive by a large -39.15%. … Eyeballing growth from a sector-level, the US automobiles industry has been growing its average earnings by double-digit 37.79% over the past year, and 16.84% over the past couple of years.Simply Wall St - – Full article
NYSE:F Historical Dividend Yield Nov 23rd 17 C.H. … (NASDAQ:CHRW) CHRW has a solid dividend yield of 2.28% and has a payout ratio of 53.53% , with the expected payout in three years being 60.35%. … NYSE:HOG Historical Dividend Yield Nov 23rd 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles; and Lincoln luxury vehicles worldwide. Its Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The company’s Financial Services segment offers various automotive financing products to and through automotive dealers. Its financing products comprise retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and improvement of dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was founded in 1903 and is based in Dearborn, Michigan.
|Name:||Ford Motor Company|
Ford Motor Company
One American Road,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||F||Common Stock||New York Stock Exchange||US||USD||02. Jan 1968|
|DB||FMC1||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1968|
|XTRA||FMC1||Common Stock||XETRA Trading Platform||DE||EUR||02. Jan 1968|
|LSE||0P4F||Common Stock||London Stock Exchange||GB||USD||02. Jan 1968|
|SWX||F||Common Stock||SIX Swiss Exchange||CH||CHF||02. Jan 1968|
|BMV||F *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1968|
|BOVESPA||FDMO34||BDR EACH REPR 1 COM SHS||Bolsa de Valores de Sao Paulo||BR||BRL||23. Aug 2012|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/15|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.