General Motors Company (GM) Intrinsic Value & DCF Valuation
Auto - Manufacturers · NYSE
Current Price
$89.40
Intrinsic Value
Outside reliable range
What Is General Motors Company's Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for General Motors Company (GM) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is General Motors Company (GM) Undervalued?
Because the model output for GM is outside the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Established Brand Loyalty
GM benefits from decades of brand recognition and customer loyalty, particularly with its truck and SUV segments. This creates a sticky customer base less prone to switching.
↑Manufacturing Scale and Efficiency
GM's vast global manufacturing footprint and established supply chains provide significant cost advantages. This scale allows for efficient production and competitive pricing.
↑Dealer Network and Service Infrastructure
A widespread and well-established dealer network offers convenient sales and service points. This infrastructure is difficult and costly for new entrants to replicate.
INVESTMENT RISKS
↓Transition to Electric Vehicles
GM faces substantial execution risk in its ambitious transition to an all-electric future. Delays or missteps in battery technology, production, or software could hinder its competitiveness.
↓Regulatory and Geopolitical Shifts
Evolving emissions regulations globally and geopolitical tensions can impact manufacturing costs, market access, and supply chain stability for GM.
↓Technological Disruption
Emerging technologies like autonomous driving and advanced connectivity present both opportunities and threats. Failure to adapt quickly or invest wisely could lead to obsolescence.
Base case
GM base case valuation
Base case assumptions: 1.9% annual growth, 10.0% discount rate, 5x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GM valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for General Motors Company respond.
Open DCF Calculator for GMCompany Overview
General Motors Company, a prominent global automotive enterprise, is engaged in the design, manufacturing, and distribution of a wide array of vehicles—including trucks, crossovers (SUVs), and passenger cars—along with related parts and accessories. Its expansive reach covers numerous regions such as North America, the Asia Pacific, the Middle East, Africa, South America, with significant operations in the United States and China. The company organizes its business into distinct segments: GM North America, GM International, Cruise, and GM Financial. It markets its diverse vehicle lineup under well-known brand names like Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. Beyond selling to individual consumers through dealerships, GM also supplies its vehicles—including specialized models—to a variety of fleet clients, such as daily rental companies, commercial businesses, leasing firms, and government agencies. GM further extends its offerings with a comprehensive suite of advanced services for both retail and fleet customers. These include vital safety and security features like automated crash response, emergency support, roadside assistance, crisis intervention, stolen vehicle recovery, and turn-by-turn navigation. Additionally, it provides a robust set of connected services, encompassing mobile applications for remote vehicle control and locating electric vehicle charging stations, on-demand diagnostics, smart driver insights, integrated in-vehicle commerce, voice assistants, a navigation and app ecosystem, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity. The company is also actively involved in pioneering and commercializing autonomous vehicle technology. Furthermore, GM offers automotive financing and insurance solutions, alongside various software-enabled services and subscription models. Established in 1908, General Motors Company maintains its corporate headquarters in Detroit, Michigan.
Financial Metrics — GM Stock Valuation Data
Revenue/Share (TTM)
$201.78
FCF/Share (TTM)
$17.94
ROIC (TTM)
0.8%
ROE (TTM)
3.0%
P/FCF
4.9x
EV/EBITDA
7.4x
FCF Yield
20.40%
Debt/Equity
0.60x
Based on trailing twelve-month data, GM shows a free cash flow per share of $17.94 and a ROIC of 0.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 4.9x and FCF yield of 20.40% are important context metrics when evaluating GM's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of GM?
General Motors Company currently generates $17.94 in free cash flow per share. At the current price of $89.40, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is GM undervalued?
GM trades at a P/FCF ratio of 4.9x with a free cash flow yield of 20.40%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether GM is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value GM stock using DCF?
To perform a DCF valuation on General Motors Company: (1) Start with the trailing free cash flow per share ($17.94) 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 GM's risk profile — with a debt-to-equity of 0.60x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to GM?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For General Motors Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Auto - Manufacturers trends, then discounting those amounts to today's dollars. GM's ROIC of 0.8% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect GM stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For GM, with a debt-to-equity ratio of 0.60x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 7.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See GM PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Cyclical valuationsDCF and P/E value GM with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.