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:
Below please find a table outlining a discounted cash flow forecast for GM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that General Motors Co ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for GM, they are:
The company's compound free cash flow growth rate over the past 5.48 years comes in at -0.04%; that's greater than only 19.53% of US stocks we're applying DCF forecasting to.
28% of the company's capital comes from equity, which is greater than merely 11.98% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 6. This value is greater than only 0.31% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DLB, AAP, JACK, JOUT, and PSO 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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Harold Goldmeier on Seeking Alpha | October 2, 2020
Third-quarter automobile sales declined 10% year-over-year in the United States. Here is a look at how some of the larger automotive companies performed. Ford: Ford Motor Company (NYSE: F ) hit total U.S. sales of 551,796 in the third quarter. This was broken down as 311,751 trucks, 191,803 SUVs and 48,42 cars. Third-quarter sales were down 4.9% year-over-year. Truck sales were up 0.6%, SUV sales down 0.7% and car sales were down 37.5%. When removing discontinued cars from the equation, retail sales gained 1.3% year-over-year. The F-Series pickup saw a 3.5% increase to 221,647 trucks sold, which was the best third quarter for the pickup in 15 years. General Motors: Sales hit 665,192 vehicles for General Motors Company (NYSE: GM ) in the third quarter, down 10% year-over-year. The Chevro...
General Motors ([[GM]] +2.6%) reports auto sales in the U.S. declined 10% in Q3 to 665,192 units vs. -14.1% forecast by Edmunds.The Chevrolet brand experienced best quarter ever with 45% growth, while the Cadillac brand was also +45% and Envision increased 44%.Kurt McNeil, GM vice president, U.S. Sales Operations said, “Industry-wide, dealers are selling...
The much-hyped Nikola Badger electric pickup looks like an endangered species. It is absent from the electric truck startup's road map of milestones, and a delayed manufacturing deal with General Motors Company (NYSE: GM ) points to its demise before a physical prototype is ever revealed. The Badger was not in Nikola Corp. (NASDAQ: NKLA ) business plan a year ago. And it isn't there now. Founder Trevor Milton used it as a buzz-building tool for the company following the reveal of rival Tesla Inc. (NASDAQ: TSLA ) Cybertruck, a polarizing design that the electric truck leader plans to build at a new plant in Austin, Texas. "A lot of people didn't like the look of the Cybertruck, including me," Nikola CEO Mark Russell said on the company's earnings call on Aug. 4. "I think it looks like a ...