General Motors designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide. It operates through GM North America, GM Europe, GM International Operations, GM South America, and GM Financial segments. The company was founded in 1897 and is based in Detroit, Michigan.
GM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for General Motors Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that General Motors Co ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for GM, they are:
As a business, GM is generating more cash flow than 97.65% of positive cash flow stocks in the Consumer Cyclical.
39% of the company's capital comes from equity, which is greater than only 13.2% of stocks in our cash flow based forecasting set.
General Motors Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 0.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UFPT, MOD, BC, NVFY, and AN can be thought of as valuation peers to GM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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