General Motors (GM): Is the Recent Share Price Momentum Justified by Its Current Valuation?

General Motors (GM) shares have seen some movement recently, sparking conversation among investors about what could be driving the stock’s direction. Over the past month, GM is up by 3%, and up 16% in the past 3 months.

See our latest analysis for General Motors.

Momentum is building for General Motors, with its share price climbing over the past year. A strong 1-year total shareholder return of 33% highlights increased optimism around its growth prospects, despite a few bumps along the way.

If you’re interested in seeing how other major auto players are performing, check out the full lineup with See the full list for free.

With General Motors up notably over the past year and trading near analyst price targets, is this a rare chance to buy an undervalued industry leader, or has the market already priced in all the upside?

Most Popular Narrative: 2% Undervalued

General Motors recently closed at $60.13, just below the most widely tracked fair value estimate of $61.36. The small gap draws attention to whether investors are truly factoring in the company’s future catalysts and risks.

“Strategic investments in U.S. manufacturing and battery production, including new chemistries (LMR, LFP) and flexible plant capacity, are expected to offset regulatory and tariff headwinds, reduce per-unit costs, and widen margins as scale increases and new capacity comes online by 2027.”

Read the complete narrative.

Curious what bold bets underpin that fair value? The real intrigue is in aggressive cost strategies, next-generation batteries, and a profitability leap that could surprise even seasoned auto market watchers. Dive in to discover which future projections really make the difference.

Result: Fair Value of $61.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent EV demand weakness or mounting tariff headwinds could quickly cloud the upbeat outlook that GM investors are banking on.

Find out about the key risks to this General Motors narrative.

Build Your Own General Motors Narrative

If you see the picture differently or want to dig into the numbers yourself, you can craft a personal narrative using your own analysis in just a few minutes: Do it your way

A great starting point for your General Motors research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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