Auto - Manufacturers · NYSE
Current Price
$76.62
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on General Motors Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names. The company also sells trucks, crossovers, cars, and purpose-built vehicles to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation; and connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, in-vehicle voice, voice assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity, as well as develops and commercializes autonomous vehicle technology. Further, the company provides automotive financing and insurance services; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
ROIC (TTM)
1.0%
ROE (TTM)
4.0%
FCF Yield
18.02%
Based on trailing twelve-month data, GM shows a free cash flow per share of N/A and a ROIC of 1.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 18.02% are important context metrics when evaluating GM's stock valuation relative to peers.
The intrinsic value of GM 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 GM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $76.62. 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 General Motors 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 GM'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 General Motors 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. GM's ROIC of 1.0% 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 GM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
