GM Relative Valuation
GM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GM is overvalued; if below, it's undervalued.
Historical Valuation
General Motors Co (GM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 6.89 is considered Undervalued compared with the five-year average of 6.03. The fair price of General Motors Co (GM) is between 75.13 to 105.58 according to relative valuation methord. Compared to the current price of 74.69 USD , General Motors Co is Undervalued By 0.58%.
Relative Value
Fair Zone
75.13-105.58
Current Price：74.69
0.58%
Undervalued
6.95
PE
1Y
3Y
5Y
Trailing
Forward
8.49
EV/EBITDA
General Motors Co. (GM) has a current EV/EBITDA of 8.49. The 5-year average EV/EBITDA is 6.86. The thresholds are as follows: Strongly Undervalued below 5.20, Undervalued between 5.20 and 6.03, Fairly Valued between 7.69 and 6.03, Overvalued between 7.69 and 8.52, and Strongly Overvalued above 8.52. The current Forward EV/EBITDA of 8.49 falls within the Overvalued range.
14.70
EV/EBIT
General Motors Co. (GM) has a current EV/EBIT of 14.70. The 5-year average EV/EBIT is 12.36. The thresholds are as follows: Strongly Undervalued below 9.83, Undervalued between 9.83 and 11.09, Fairly Valued between 13.63 and 11.09, Overvalued between 13.63 and 14.89, and Strongly Overvalued above 14.89. The current Forward EV/EBIT of 14.70 falls within the Overvalued range.
0.38
PS
General Motors Co. (GM) has a current PS of 0.38. The 5-year average PS is 0.37. The thresholds are as follows: Strongly Undervalued below 0.13, Undervalued between 0.13 and 0.25, Fairly Valued between 0.49 and 0.25, Overvalued between 0.49 and 0.61, and Strongly Overvalued above 0.61. The current Forward PS of 0.38 falls within the Historic Trend Line -Fairly Valued range.
3.92
P/OCF
General Motors Co. (GM) has a current P/OCF of 3.92. The 5-year average P/OCF is 3.52. The thresholds are as follows: Strongly Undervalued below 0.68, Undervalued between 0.68 and 2.10, Fairly Valued between 4.94 and 2.10, Overvalued between 4.94 and 6.35, and Strongly Overvalued above 6.35. The current Forward P/OCF of 3.92 falls within the Historic Trend Line -Fairly Valued range.
6.32
P/FCF
General Motors Co. (GM) has a current P/FCF of 6.32. The 5-year average P/FCF is 12.25. The thresholds are as follows: Strongly Undervalued below -14.41, Undervalued between -14.41 and -1.08, Fairly Valued between 25.58 and -1.08, Overvalued between 25.58 and 38.91, and Strongly Overvalued above 38.91. The current Forward P/FCF of 6.32 falls within the Historic Trend Line -Fairly Valued range.
General Motors Co (GM) has a current Price-to-Book (P/B) ratio of 1.05. Compared to its 3-year average P/B ratio of 0.75 , the current P/B ratio is approximately 40.29% higher. Relative to its 5-year average P/B ratio of 0.98, the current P/B ratio is about 7.65% higher. General Motors Co (GM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 20.20%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 17.67% , the current FCF yield is about -100.00% lower.
1.06
P/B
Median3y
0.75
Median5y
0.98
21.28
FCF Yield
Median3y
20.20
Median5y
17.67
Competitors Valuation Multiple
The average P/S ratio for GM's competitors is 4.09, providing a benchmark for relative valuation. General Motors Co Corp (GM) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -0.34%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GM increased by 41.34% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.95 to 15.79.
The secondary factor is the Revenue Growth, contributed -0.34%to the performance.
Overall, the performance of GM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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