General Motors Company (GM) Stock Valuation — PE Analysis
Auto - Manufacturers · NYSE
Current Price
$87.93
PE Ratio (TTM)
44.0x
Intrinsic Value
$68.84
-27.7% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty and Dealer Network
GM benefits from established brand recognition and a vast, entrenched dealer network. This provides significant customer loyalty and service infrastructure.
↑Economies of Scale in Manufacturing
Large-scale production allows GM to achieve cost efficiencies in manufacturing and procurement. This competitive cost advantage is difficult for smaller players to replicate.
↑Software and Digital Services Growth
GM is expanding its software and digital services, creating potential for recurring revenue and customer lock-in. This diversifies income beyond vehicle sales.
INVESTMENT RISKS
↓Intensifying EV Competition
The automotive industry is rapidly shifting to electric vehicles, with new and established players aggressively competing. GM faces pressure to maintain market share and technological leadership.
↓Regulatory and Geopolitical Shifts
Evolving trade policies and geopolitical tensions can significantly impact GM's global operations, supply chains, and market access. This creates operational and financial risks.
↓Technological Disruption in Auto
Rapid advancements in autonomous driving, connectivity, and alternative powertrains pose a risk of obsolescence for traditional internal combustion engine vehicles and manufacturing processes.
Base case
GM base case PE valuation
A base case PE valuation for GM estimates a fair value of about $68.84 per share, against a current price of $87.93. The model assumes 2.1% annual earnings growth, a 42.07x target PE multiple, and a 10% discount rate.
Intrinsic Value
$68.84
Margin of safety
-27.7%
Expected annual return
-4.8%
Base case assumptions: 2.1% annual earnings growth, 42.07x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for General Motors Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
44.0x
PEG Ratio
n/m
Earnings Yield
2.37%
ROE (TTM)
3.0%
Revenue/Share (TTM)
$201.78
Dividend Yield
0.75%
Debt/Equity
2.06x
Frequently Asked Questions
What is the PE ratio of GM?
The trailing twelve-month PE ratio of GM reflects how much investors pay per dollar of General Motors Company's earnings. This metric is most useful when compared to Auto - Manufacturers peers and the company's own historical range.
Is GM overvalued based on PE ratio?
GM's PE of 44.0x combined with a PEG ratio of -0.64 provides a growth-adjusted perspective. GM has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Auto - Manufacturers, a DCF analysis may be more appropriate.
How do I value GM stock using PE ratio?
To value General Motors Company using PE: (1) Compare the current PE (44.0x) against the Auto - Manufacturers median to assess relative pricing, (2) check the PEG ratio (-0.64) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of GM?
GM's PEG ratio is -0.64, calculated by dividing the PE ratio (44.0x) by the expected earnings growth rate. Because GM has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for GM stock valuation?
PE ratio gives a quick relative read — how GM is priced versus Auto - Manufacturers peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See GM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value GM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.