Auto - Manufacturers · NYSE
Current Price
$12.26
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Ford Motor Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.
ROIC (TTM)
0.4%
ROE (TTM)
-18.9%
FCF Yield
25.95%
Based on trailing twelve-month data, F shows a free cash flow per share of N/A and a ROIC of 0.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 25.95% are important context metrics when evaluating F's stock valuation relative to peers.
The intrinsic value of F depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether F is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $12.26. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Ford Motor Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Auto - Manufacturers industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting F's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Ford Motor Company, this means projecting how much free cash flow the Auto - Manufacturers will produce over the next 5-10 years, then discounting those amounts to today's dollars. F's ROIC of 0.4% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For F, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
