GM Valuation
| GM Stock | USD 55.59 0.09 0.16% |
At this time, the firm appears to be overvalued. General Motors retains a regular Real Value of $51.17 per share. The prevalent price of the firm is $55.59. Our model calculates the value of General Motors from evaluating the firm fundamentals such as Current Valuation of 156.76 B, return on asset of 0.027, and Return On Equity of 0.14 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting GM's valuation include:
Price Book 0.8617 | Enterprise Value 156.8 B | Enterprise Value Ebitda 6.1786 | Price Sales 0.3345 | Forward PE 5.2029 |
Overvalued
Today
Please note that GM's price fluctuation is very steady at this time. Calculation of the real value of General Motors is based on 3 months time horizon. Increasing GM's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the GM stock is determined by what a typical buyer is willing to pay for full or partial control of General Motors. Since GM is currently traded on the exchange, buyers and sellers on that exchange determine the market value of GM Stock. However, GM's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 55.59 | Real 51.17 | Target 48.34 | Hype 55.56 | Naive 55.1 |
The intrinsic value of GM's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence GM's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of General Motors helps investors to forecast how GM stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of GM more accurately as focusing exclusively on GM's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use GM's intrinsic value based on its ongoing forecasts of GM's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against GM's closest peers.
GM Cash |
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GM Valuation Trend
Knowing GM's actual value is paramount for traders when making sound investment determinations. Using both GM's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
GM Revenue by Product
GM Total Value Analysis
General Motors is currently expected to have takeover value of 156.76 B with market capitalization of 61.13 B, debt of 122.65 B, and cash on hands of 19.15 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the GM fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
156.76 B | 61.13 B | 122.65 B | 19.15 B |
GM Investor Information
About 87.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.86. Some equities with similar Price to Book (P/B) outperform the market in the long run. General Motors recorded earning per share (EPS) of 9.37. The entity last dividend was issued on the 6th of December 2024. The firm had 2:1 split on the March 29, 1989. Based on the analysis of GM's profitability, liquidity, and operating efficiency, General Motors is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 11.7 B | 20.9 B |
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GM Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GM has an asset utilization ratio of 62.93 percent. This suggests that the Company is making $0.63 for each dollar of assets. An increasing asset utilization means that General Motors is more efficient with each dollar of assets it utilizes for everyday operations.GM Ownership Allocation
General Motors has a total of 1.1 Billion outstanding shares. The majority of General Motors outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in GM to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in General Motors. Please pay attention to any change in the institutional holdings of General Motors as this could imply that something significant has changed or is about to change at the company. On November 12, 2024, Senator John Fetterman of US Senate acquired under $15k worth of General Motors's common stock.GM Profitability Analysis
The company generated the yearly revenue of 171.84 B. Reported Net Income was 9.84 B with gross profit of 21.15 B.GM Past Distributions to stockholders
About GM Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of General Motors. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of General Motors based exclusively on its fundamental and basic technical indicators. By analyzing GM's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of GM's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of GM. We calculate exposure to GM's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of GM's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 30.5 B | 19.3 B | |
| Pretax Profit Margin | 0.06 | 0.09 | |
| Operating Profit Margin | 0.05 | 0.06 | |
| Net Profit Margin | 0.06 | 0.10 | |
| Gross Profit Margin | 0.11 | 0.08 |
A single share of GM represents a small ownership stake in the entity. As a stockholder of GM, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
GM Dividends Analysis For Valuation
As of the 30th of November 2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 0.87, though Dividends Paid is likely to grow to (567.1 M). . At this time, GM's Retained Earnings are very stable compared to the past year. As of the 30th of November 2024, Retained Earnings Total Equity is likely to grow to about 50.6 B, while Price Earnings Ratio is likely to drop 4.05.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -597 M | -567.1 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.06 | 0.06 | |
| Dividend Paid And Capex Coverage Ratio | 0.83 | 0.87 |
There are various types of dividends GM can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of GM shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from General Motors directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When GM pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of GM by the value of the dividends paid out.
GM Growth Indicators
Investing in growth stocks can be very risky. If the company such as GM does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.4 B | |
| Quarterly Earnings Growth Y O Y | 0.218 | |
| Forward Price Earnings | 5.2029 |
GM Current Valuation Indicators
GM's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final GM's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as GM, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use GM's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes GM's worth.Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Automobile Manufacturers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.218 | Dividend Share 0.45 | Earnings Share 9.37 | Revenue Per Share 155.11 | Quarterly Revenue Growth 0.105 |
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.