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 ($43.21) is trading above our estimate of fair value ($16.36)

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?

Other financial metrics that can be useful for relative valuation.

GM 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/EBITDA9.9x
PEG Ratio-1.3x

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 Average25.6x
F Ford Motor
11.8x10.9%US$51.4b
RACE Ferrari
55.4x8.4%US$73.9b
LI Li Auto
15.3x22.0%US$24.7b
THO THOR Industries
19.9x22.9%US$5.4b
GM General Motors
5x-3.9%US$49.9b

Price-To-Earnings vs Peers: GM is good value based on its Price-To-Earnings Ratio (5x) compared to the peer average (25.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: GM is good value based on its Price-To-Earnings Ratio (5x) compared to the Global Auto industry average (15x).


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 Ratio5x
Fair PE Ratio13x

Price-To-Earnings vs Fair Ratio: GM is good value based on its Price-To-Earnings Ratio (5x) compared to the estimated Fair Price-To-Earnings Ratio (13x).


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
CurrentUS$43.21
US$53.20
+23.1%
28.9%US$95.00US$28.00n/a28
Apr ’25US$45.40
US$51.78
+14.0%
30.2%US$95.00US$28.00n/a28
Mar ’25US$40.99
US$52.11
+27.1%
30.9%US$95.00US$28.00n/a26
Feb ’25US$38.87
US$49.43
+27.2%
30.5%US$95.00US$28.00n/a26
Jan ’25US$35.92
US$48.03
+33.7%
37.4%US$95.00US$27.00n/a24
Dec ’24US$32.36
US$47.76
+47.6%
38.7%US$95.00US$27.00n/a23
Nov ’24US$28.00
US$47.98
+71.3%
36.5%US$90.00US$26.00n/a23
Oct ’24US$32.97
US$51.65
+56.7%
31.7%US$95.00US$33.00n/a23
Sep ’24US$33.54
US$51.52
+53.6%
32.0%US$95.00US$33.00n/a23
Aug ’24US$38.12
US$51.67
+35.5%
31.6%US$95.00US$33.00n/a23
Jul ’24US$38.56
US$49.05
+27.2%
32.9%US$86.00US$30.00n/a23
Jun ’24US$33.02
US$49.00
+48.4%
31.5%US$86.00US$30.00n/a23
May ’24US$33.48
US$49.29
+47.2%
31.1%US$86.00US$30.00n/a24
Apr ’24US$36.68
US$50.09
+36.6%
30.3%US$86.00US$30.00US$45.4023
Mar ’24US$38.72
US$50.55
+30.5%
31.6%US$86.00US$30.00US$40.9922
Feb ’24US$39.30
US$49.93
+27.0%
31.8%US$86.00US$30.00US$38.8721
Jan ’24US$33.64
US$50.98
+51.5%
34.6%US$90.00US$30.00US$35.9221
Dec ’23US$40.43
US$50.98
+26.1%
34.6%US$90.00US$30.00US$32.3621
Nov ’23US$39.35
US$50.52
+28.4%
33.7%US$90.00US$30.00US$28.0022
Oct ’23US$32.09
US$52.58
+63.9%
31.1%US$90.00US$29.00US$32.9722
Sep ’23US$38.56
US$52.85
+37.1%
33.6%US$95.00US$29.00US$33.5422
Aug ’23US$36.77
US$52.90
+43.9%
33.6%US$95.00US$29.00US$38.1222
Jul ’23US$32.19
US$59.33
+84.3%
27.7%US$95.00US$33.00US$38.5624
Jun ’23US$38.27
US$61.88
+61.7%
26.8%US$98.00US$33.00US$33.0224
May ’23US$37.91
US$63.82
+68.3%
23.0%US$98.00US$40.00US$33.4822
Apr ’23US$42.96
US$71.90
+67.4%
18.9%US$100.00US$44.00US$36.6821

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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