Ally Financial Valuation

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

Below Fair Value: ALLY ($39.81) is trading below our estimate of fair value ($55.09)

Significantly Below Fair Value: ALLY is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ALLY 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does ALLY's PE Ratio compare to its peers?

The above table shows the PE ratio for ALLY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.1x
SYF Synchrony Financial
7.8x4.4%US$17.2b
CACC Credit Acceptance
23.7x30.0%US$6.8b
OMF OneMain Holdings
9.4x18.0%US$6.1b
DFS Discover Financial Services
11.2x6.1%US$32.1b
ALLY Ally Financial
13.3x18.1%US$12.1b

Price-To-Earnings vs Peers: ALLY is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does ALLY's PE Ratio compare vs other companies in the US Consumer Finance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ALLY is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the US Consumer Finance industry average (11x).


Price to Earnings Ratio vs Fair Ratio

What is ALLY'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.

ALLY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: ALLY is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


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 ALLY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.81
US$40.94
+2.8%
16.0%US$53.00US$28.00n/a18
Mar ’25US$37.33
US$40.10
+7.4%
14.5%US$51.00US$28.00n/a20
Feb ’25US$37.09
US$39.80
+7.3%
14.0%US$51.00US$28.00n/a21
Jan ’25US$34.92
US$32.92
-5.7%
15.7%US$41.00US$25.32n/a20
Dec ’24US$30.86
US$30.91
+0.2%
18.4%US$40.00US$22.00n/a20
Nov ’24US$24.30
US$30.39
+25.1%
18.6%US$40.00US$20.50n/a19
Oct ’24US$26.68
US$32.67
+22.4%
17.0%US$45.00US$22.00n/a18
Sep ’24US$28.94
US$32.61
+12.7%
17.1%US$45.00US$22.00n/a18
Aug ’24US$30.42
US$32.74
+7.6%
16.2%US$45.00US$24.00n/a19
Jul ’24US$27.01
US$31.68
+17.3%
20.7%US$47.00US$22.00n/a19
Jun ’24US$27.12
US$32.11
+18.4%
19.9%US$47.00US$22.00n/a18
May ’24US$26.03
US$32.11
+23.4%
19.9%US$47.00US$22.00n/a18
Apr ’24US$25.49
US$34.06
+33.6%
22.2%US$51.00US$22.00n/a18
Mar ’24US$30.07
US$35.33
+17.5%
20.4%US$51.00US$24.00US$37.3318
Feb ’24US$33.84
US$34.78
+2.8%
20.8%US$51.00US$22.00US$37.0918
Jan ’24US$24.45
US$32.40
+32.5%
22.0%US$46.00US$19.00US$34.9218
Dec ’23US$25.92
US$32.45
+25.2%
21.7%US$46.00US$19.00US$30.8618
Nov ’23US$27.67
US$33.17
+19.9%
19.1%US$46.00US$23.00US$24.3018
Oct ’23US$27.83
US$44.58
+60.2%
23.9%US$72.00US$31.00US$26.6819
Sep ’23US$32.79
US$45.95
+40.1%
22.0%US$72.00US$34.00US$28.9419
Aug ’23US$33.43
US$46.55
+39.2%
21.8%US$72.00US$34.00US$30.4220
Jul ’23US$34.20
US$57.10
+67.0%
17.5%US$77.00US$38.00US$27.0120
Jun ’23US$42.33
US$58.45
+38.1%
15.3%US$77.00US$45.00US$27.1220
May ’23US$39.96
US$58.60
+46.6%
14.9%US$77.00US$46.00US$26.0320
Apr ’23US$43.98
US$64.10
+45.7%
12.4%US$81.00US$52.00US$25.4920
Mar ’23US$46.31
US$65.20
+40.8%
11.9%US$81.00US$52.00US$30.0720

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


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