General Motors Company (GM) Stock Valuation — DCF Analysis
Auto - Manufacturers · NYSE
Current Price
$81.50
Intrinsic Value
$136.88
+40.5% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty and Scale
GM benefits from decades of brand recognition and a vast dealer network. This scale provides significant cost advantages in manufacturing and distribution.
↑Technological Investment in EVs
Significant investment in EV battery technology and platforms, like the Ultium platform, positions GM for future market share in the electric vehicle transition.
↑Government Relations and Lobbying
GM actively engages with policymakers, influencing regulations and securing potential government incentives for manufacturing and EV adoption.
INVESTMENT RISKS
↓Supplier Disruptions
Recent strikes at key suppliers, like the axle supplier, highlight vulnerability to labor disputes and supply chain interruptions, impacting production.
↓EV Transition Execution
The success of GM's electric future hinges on the effective rollout of new battery technology and vehicles, facing intense competition and consumer adoption hurdles.
↓Regulatory Scrutiny
While beneficial, government relations also expose GM to potential regulatory changes and investigations that could impact operations or profitability.
Base case
GM base case valuation
A base case discounted cash flow model for GM estimates an intrinsic value of about $136.88 per share, against a current price of $81.5. The model assumes 7.2% annual free cash flow growth, a 10.0% discount rate, and a 6x exit multiple.
Intrinsic Value
$136.88
Margin of safety
+40.5%
Expected annual return
+10.9%
Base case assumptions: 7.2% annual growth, 10.0% discount rate, 6x exit multiple, 5 year projection. Data as of 2026-06-12.
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)
$200.80
FCF/Share (TTM)
$13.57
ROIC (TTM)
1.0%
ROE (TTM)
4.0%
P/FCF
5.9x
EV/EBITDA
11.7x
FCF Yield
16.98%
Debt/Equity
2.04x
Based on trailing twelve-month data, GM shows a free cash flow per share of $13.57 and a ROIC of 1.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 5.9x and FCF yield of 16.98% 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 $13.57 in free cash flow per share. At the current price of $81.50, 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 5.9x with a free cash flow yield of 16.98%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. 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 ($13.57) 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 2.04x, 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 1.0% suggests the company may face challenges generating returns above 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 2.04x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 11.7x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.